[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/luc/wpaper/17-15.html
   My bibliography  Save this paper

Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK

Author

Listed:
  • Michel Beine

    (CREA, Université du Luxembourg)

  • Marco Delogu

    (Université du Luxembourg, Université catholique de Louvain)

  • Lionel Ragot

    (Université Paris Nanterre, EconomiX and CEPII)

Abstract
This paper studies the determinants of international students’ mobility at the university- level, focusing specifically on the role of tuition fees. We first develop an original Random Utility Maximization model of location choice for international students in the presence of capacity constraints of the hosting institutions. The last layer of the model gives rise to a gravity equation. This equation is estimated using new data on student migration flows at the university level for the U.K. We control for the endogeneity of tuition fees by taking benefit of the institutional constraints in terms of tuition caps applied in the UK to European students at the bachelor level. The estimations support a negative impact of tuition fees and stress the need to account for the endogenous nature of the fees in the empirical identification of their impact. The estimations also support an important role of additional destination-specific variables such as host capacity, the expected return of education and the cost of living in the vicinity of the university.

Suggested Citation

  • Michel Beine & Marco Delogu & Lionel Ragot, 2017. "Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK," DEM Discussion Paper Series 17-15, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:17-15
    as

    Download full text from publisher

    File URL: https://wwwen-archive.uni.lu/content/download/102472/1226784/file/2017_15%20Understanding%20the%20Impact%20of%20Tuition%20Fees%20in%20Foreign%20Education%20-%20the%20Case%20of%20the%20UK.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. de Palma, Andre & Picard, Nathalie & Waddell, Paul, 2007. "Discrete choice models with capacity constraints: An empirical analysis of the housing market of the greater Paris region," Journal of Urban Economics, Elsevier, vol. 62(2), pages 204-230, September.
    2. Bertoli, Simone & Fernández-Huertas Moraga, Jesús, 2013. "Multilateral resistance to migration," Journal of Development Economics, Elsevier, vol. 102(C), pages 79-100.
    3. Fischer, Georg-Benedikt & Bruckmeier, Kerstin & Wigger, Berthold U., 2013. "Does distance matter? Tuition Fees and Enrollment of First-Year Students at German Public Universities," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79813, Verein für Socialpolitik / German Economic Association.
    4. James Sakoda, 1981. "A generalized index of dissimilarity," Demography, Springer;Population Association of America (PAA), vol. 18(2), pages 245-250, May.
    5. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457, Elsevier.
    6. Stephen Machin & Richard Murphy, 2017. "Paying out and crowding out? The globalization of higher education," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1075-1110.
    7. Beine, Michel & Noël, Romain & Ragot, Lionel, 2014. "Determinants of the international mobility of students," Economics of Education Review, Elsevier, vol. 41(C), pages 40-54.
    8. Michel Beine & Marco Delogu & Lionel Ragot, 2016. "The Role of Fees in Foreign Education: evidence from Italy and the UK," DEM Discussion Paper Series 16-06, Department of Economics at the University of Luxembourg.
    9. Dreher, Axel & Poutvaara, Panu, 2005. "Student Flows and Migration: An Empirical Analysis," IZA Discussion Papers 1612, Institute of Labor Economics (IZA).
    10. Axel Dreher & Panu Poutvaara, 2005. "Student Flows and Migration: An Empirical Analysis�," TWI Research Paper Series 8, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    11. Michel Beine & Simone Bertoli & Jesús Fernández-Huertas Moraga, 2016. "A Practitioners’ Guide to Gravity Models of International Migration," The World Economy, Wiley Blackwell, vol. 39(4), pages 496-512, April.
    12. Michel Beine & Marco Delogu & Lionel Ragot, 2020. "The role of fees in foreign education: evidence from Italy [Determinants of international student migration]," Journal of Economic Geography, Oxford University Press, vol. 20(2), pages 571-600.
    13. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    14. Daniëlle Bertrand-Cloodt & Frank Cörvers & Hans Heijke, 2017. "Ability, Academic Climate, and Going Abroad for Work or Pursuing a PhD," CESifo Economic Studies, CESifo Group, vol. 63(1), pages 119-140.
    15. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom," Working Papers 2017-04, CEPII research center.
    16. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    17. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, September.
    18. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, vol. 95(1), pages 42-57, May.
    19. Timo Mitze & Claudia Burgard & Bjoern Alecke, 2013. "The Effect of Tuition Fees on Student Enrollment and Location Choice: Interregional Migration, Border Effects and Gender Differences," ERSA conference papers ersa13p883, European Regional Science Association.
    20. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5.
    21. Simone Bertoli & J. Fernandes-Huertas Moraga, 2013. "Multilateral resistance to migration," Post-Print halshs-00820169, HAL.
    22. Donata Bessey, 2012. "International student migration to Germany," Empirical Economics, Springer, vol. 42(1), pages 345-361, February.
    23. Farai Jena & Barry Reilly, 2013. "The determinants of United Kingdom student visa demand from developing countries," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    24. Gary L. Hunt, 2000. "Alternative Nested Logit Model Structures and the Special Case of Partial Degeneracy," Journal of Regional Science, Wiley Blackwell, vol. 40(1), pages 89-113, February.
    25. Kahanec, Martin & Králiková, Renáta, 2011. "Pulls of International Student Mobility," IZA Discussion Papers 6233, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michel Beine & Marco Delogu & Lionel Ragot, 2020. "The role of fees in foreign education: evidence from Italy [Determinants of international student migration]," Journal of Economic Geography, Oxford University Press, vol. 20(2), pages 571-600.
    2. Björn NILSSON, 2019. "Education and migration: insights for policymakers," Working Paper 23ca9c54-061a-4d60-967c-f, Agence française de développement.
    3. Elena Konsulova-Atanasova, 2019. "Students’ fees for higher education – the main instrument for attracting students," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 86-101.
    4. Neeraj Kaushal & Mauro Lanati, 2019. "International Student Mobility: Growth and Dispersion," NBER Working Papers 25921, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michel Beine & Marco Delogu & Lionel Ragot, 2020. "The role of fees in foreign education: evidence from Italy [Determinants of international student migration]," Journal of Economic Geography, Oxford University Press, vol. 20(2), pages 571-600.
    2. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom," Working Papers 2017-04, CEPII research center.
    3. Andrew Abbott & Mary Silles, 2016. "Determinants of International Student Migration," The World Economy, Wiley Blackwell, vol. 39(5), pages 621-635, May.
    4. Beine, Michel & Noël, Romain & Ragot, Lionel, 2014. "Determinants of the international mobility of students," Economics of Education Review, Elsevier, vol. 41(C), pages 40-54.
    5. Neeraj Kaushal & Mauro Lanati, 2019. "International Student Mobility: Growth and Dispersion," NBER Working Papers 25921, National Bureau of Economic Research, Inc.
    6. Léa Marchal & Claire Naiditch, 2020. "How Borrowing Constraints Hinder Migration: Theoretical Insights from a Random Utility Maximization Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 122(2), pages 732-761, April.
    7. Bredtmann, Julia & Nowotny, Klaus & Otten, Sebastian, 2020. "Linguistic distance, networks and migrants’ regional location choice," Labour Economics, Elsevier, vol. 65(C).
    8. Michel Beine & Simone Bertoli & Jesús Fernández-Huertas Moraga, 2016. "A Practitioners’ Guide to Gravity Models of International Migration," The World Economy, Wiley Blackwell, vol. 39(4), pages 496-512, April.
    9. Romano Piras, 2021. "Migration flows by educational attainment: Disentangling the heterogeneous role of push and pull factors," Journal of Regional Science, Wiley Blackwell, vol. 61(3), pages 515-542, June.
    10. Johannes Buggle & Thierry Mayer & Seyhun Orcan Sakalli & Mathias Thoenig, 2023. "The Refugee’s Dilemma: Evidence from Jewish Migration out of Nazi Germany," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(2), pages 1273-1345.
    11. Michel Beine & Pauline Bourgeon & Jean‐Charles Bricongne, 2019. "Aggregate Fluctuations and International Migration," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(1), pages 117-152, January.
    12. Di Iasio, Valentina & Wahba, Jackline, 2023. "Natives' Attitudes and Immigration Flows to Europe," IZA Discussion Papers 15942, Institute of Labor Economics (IZA).
    13. Michel Beine & Luisito Bertinelli & Rana Cömertpay & Anastasia Litina & Jean-François Maystadt, 2020. "The Gravity Model of Forced Displacement Using Mobile Phone Data," DEM Discussion Paper Series 20-13, Department of Economics at the University of Luxembourg.
    14. Simone Bertoli & Jesus Fernández-Huertas Moraga, 2012. "Visa Policies, Networks and the Cliff at the Border," Working Papers 2012-12, FEDEA.
    15. Julia Bredtmann & Klaus Nowotny & Sebastian Otten, 2017. "Linguistic Distance, Networks and Migrants’ Regional Location Choice," RF Berlin - CReAM Discussion Paper Series 1712, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    16. Michel Beine & Joël Machado & Ilse Ruyssen, 2020. "Do potential migrants internalize migrant rights in OECD host societies?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1429-1456, November.
    17. Chiara Zanardello, 2023. "Market forces in Italian academia today (and yesterday)," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(1), pages 651-698, January.
    18. Nina Neubecker & Marcel Smolka & Anne Steinbacher, 2017. "Networks And Selection In International Migration To Spain," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1265-1286, July.
    19. Lanati, Mauro & Thiele, Rainer, 2020. "International Student Flows from Developing Countries: Do Donors Have an Impact?," Economics of Education Review, Elsevier, vol. 77(C).
    20. Beine, Michel & Bertinelli, Luisito & Cömertpay, Rana & Litina, Anastasia & Maystadt, Jean-François, 2021. "A gravity analysis of refugee mobility using mobile phone data," Journal of Development Economics, Elsevier, vol. 150(C).

    More about this item

    Keywords

    Foreign students; Tuition fees; Location choice; University Quality.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:luc:wpaper:17-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marina Legrand (email available below). General contact details of provider: https://edirc.repec.org/data/crcrplu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.