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Do international students crowd-out or cross-subsidize Americans in higher education?

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  • Shih, Kevin

Abstract

Recent growth in international enrollment at U.S. universities has raised controversy. While critics accuse international students of displacing American students, university administrators have argued that they provide much needed tuition revenue. This paper examines how international students impact domestic enrollment, focusing on a unique boom and bust in international matriculation into U.S. graduate programs from 1995 to 2005. Overall foreign students appear to increase domestic enrollment. This positive effect is linked to cross-subsidization, whereby high net tuition payments from foreign students help subsidize the cost of enrolling additional domestic students.

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  • Shih, Kevin, 2017. "Do international students crowd-out or cross-subsidize Americans in higher education?," Journal of Public Economics, Elsevier, vol. 156(C), pages 170-184.
    • Handle: RePEc:eee:pubeco:v:156:y:2017:i:c:p:170-184
    DOI: 10.1016/j.jpubeco.2017.10.003
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    2. Yuheng Lin & Dooruj Rambaccussing & Yu Zhu, 2024. "The impact of international students in the UK on the cultural goods trade," French Stata Users' Group Meetings 2024 29, Stata Users Group.
    3. William R. Kerr, 2020. "The Gift of Global Talent: Innovation Policy and the Economy," Innovation Policy and the Economy, University of Chicago Press, vol. 20(1), pages 1-37.
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    6. Chen, Mingyu & Howell, Jessica & Smith, Jonathan, 2023. "Best and brightest? The impact of student visa restrictiveness on who attends college in the US," Labour Economics, Elsevier, vol. 84(C).
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    8. Bachli, Mirjam & Tsankova, Teodora, 2020. "Free movement of workers and native demand for tertiary education," CAGE Online Working Paper Series 515, Competitive Advantage in the Global Economy (CAGE).
    9. Wang, Zhiling & Pastore, Francesco & Karreman, Bas & van Oort, Frank, 2021. "Do International Study Programmes Pay off for Local Students?," IZA Discussion Papers 14374, Institute of Labor Economics (IZA).
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    12. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2021. "The Globalization of Postsecondary Education: The Role of International Students in the US Higher Education System," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 163-184, Winter.
    13. Lo Sasso, Anthony T., 2021. "Regulating high-skilled immigration: The market for medical residents," Journal of Health Economics, Elsevier, vol. 76(C).
    14. Catalina Amuedo‐Dorantes & Kevin Shih & Huanan Xu, 2023. "The implications of optional practical training reforms on international student enrollments and quality," Economic Inquiry, Western Economic Association International, vol. 61(2), pages 253-281, April.
    15. Tumen, Semih, 2018. "The Impact of Low-Skill Refugees on Youth Education," IZA Discussion Papers 11869, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    International students; Crowd-out; Cross-subsidize; Graduate education;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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