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The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom

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  • Michel Beine
  • Marco Delogu
  • Lionel Ragot

Abstract

This working paper studies the determinants of international students’ mobility at the university level, focusing specifically on the role of tuition fees. We derive a gravity model based on a 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 is estimated using new data on student migration flows at the university level for Italy and the United Kingdom. The particular institutional setting of the two destination countries allows us to control for the potential endogeneity of tuition fees. We obtain evidence for a clear and negative effect of fees on international student mobility and confirm the positive impact of the quality of the education. The estimations also support the 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. "The Role of Fees in Foreign Education: Evidence From Italy and the United Kingdom," Working Papers 2017-04, CEPII research center.
    • Handle: RePEc:cii:cepidt:2017-04
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    References listed on IDEAS

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    Cited by:

    1. 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.

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    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

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