IDEAS home Printed from https://ideas.repec.org/a/taf/edecon/v18y2010i2p191-205.html
   My bibliography  Save this article

Optimal design for study-abroad scholarship: the effect of payback policy

Author

Listed:
  • Donald Lien
  • Yaqin Wang

Abstract

This paper examines the optimal design for a study-abroad scholarship. A student is awarded a fixed-amount scholarship to participate in the program but will have to pay back the scholarship if his/her performance fails to meet a target level. When the program is highly productive, the scholarship is low and the target performance is high. The opposite case prevails if the disutility from studying is high. A higher program cost leads to a higher target performance and a cost sharing between the university and the students. When the uncertainty regarding performance evaluation in the program increases, the target performance decreases while the scholarship amount is higher.

Suggested Citation

  • Donald Lien & Yaqin Wang, 2010. "Optimal design for study-abroad scholarship: the effect of payback policy," Education Economics, Taylor & Francis Journals, vol. 18(2), pages 191-205.
    • Handle: RePEc:taf:edecon:v:18:y:2010:i:2:p:191-205
    DOI: 10.1080/09645290902796373
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/10.1080/09645290902796373
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09645290902796373?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Messer, Dolores & Wolter, Stefan C., 2005. "Are Student Exchange Programs Worth It?," IZA Discussion Papers 1656, Institute of Labor Economics (IZA).
    2. Hessel Oosterbeek & Dinand Webbink, 2006. "Assessing the returns to studying abroad," CPB Discussion Paper 64, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Laura Thissen & Sjef Ederveen, 2006. "Higher education; time for coordination on a European level?," CPB Discussion Paper 68, CPB Netherlands Bureau for Economic Policy Analysis.
    Full references (including those not matched with items on IDEAS)

    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. Frederick Ploeg & Reinhilde Veugelers, 2008. "Higher Education Reform and the Renewed Lisbon Strategy: Role of Member States and the European Commission," Springer Books, in: George Gelauff & Isabel Grilo & Arjan Lejour (ed.), Subsidiarity and Economic Reform in Europe, chapter 5, pages 65-96, Springer.
    2. 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.
    3. Daraio, Cinzia & Bonaccorsi, Andrea & Geuna, Aldo & Lepori, Benedetto & Bach, Laurent & Bogetoft, Peter & F. Cardoso, Margarida & Castro-Martinez, Elena & Crespi, Gustavo & de Lucio, Ignacio Fernandez, 2011. "The European university landscape: A micro characterization based on evidence from the Aquameth project," Research Policy, Elsevier, vol. 40(1), pages 148-164, February.
    4. Rafael Gonzalez & Christopher Stehr, 2015. "The Effects of International Study Tours in the Decision of Students to Go to Work Abroad – The Example of the GGS’ IST to Turkey and Russia (Wplyw miedzynarodowych wizyt studyjnych na decyzje student," Research Reports, University of Warsaw, Faculty of Management, vol. 2(19), pages 37-49.
    5. Ekrem Akkaya & Ayse Mumcu, 2011. "ERSAMUS Student Exchange Programs: How to place students?," Working Papers 2011/02, Bogazici University, Department of Economics.
    6. De Benedetto, Marco Alberto & De Paola, Maria & Scoppa, Vincenzo & Smirnova, Janna, 2023. "Erasmus Program and Labor Market Outcomes: Evidence from a Fuzzy Regression Discontinuity Design," IZA Discussion Papers 16181, Institute of Labor Economics (IZA).
    7. Brezis Elise S., 2019. "Should individuals migrate before acquiring education or after? A new model of Brain Waste vs. Brain Drain," The B.E. Journal of Macroeconomics, De Gruyter, vol. 19(2), pages 1-11, June.
    8. Malik Fahim Bashir & Changsheng Xu & Khalid Zaman & Ghulam Akhmat, 2014. "Key Factors Determining the Rationale for Brain Drain: An Irony Never Recovered," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(8), pages 308-320, August.
    9. Romuald Méango, 2014. "International Student Migration: A Partial Identification Analysis," CESifo Working Paper Series 4677, CESifo.
    10. Elise S. Brezis, 2016. "Why Migrate: For Study or for Work?," Economies, MDPI, vol. 4(3), pages 1-12, August.
    11. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 327-439, Elsevier.
    12. Gega Todua, 2017. "Financing Education Abroad: A Developing Country Perspective," CERGE-EI Working Papers wp608, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    13. Elise S. Brezis, 2018. "Is Brain Drain passé? The Optimal Timing of Migration," Working Papers 2018-02, Bar-Ilan University, Department of Economics.
    14. José Manuel Cordero Ferrera & Rosa Simancas Rodríguez (ed.), 2016. "Investigaciones de Economía de la Educación," E-books Investigaciones de Economía de la Educación, Asociación de Economía de la Educación, edition 1, volume 11, number 11, April.
    15. Laura Thissen & Sjef Ederveen, 2006. "Higher education; time for coordination on a European level?," CPB Discussion Paper 68, CPB Netherlands Bureau for Economic Policy Analysis.
    16. Weisser, Reinhard A., 2021. "Run, graduate, run: Internationally mobile students' reactions to changing political landscapes in Europe," GLO Discussion Paper Series 872, Global Labor Organization (GLO).
    17. Jan Bergerhoff & Lex Borghans & Philipp Seegers & Tom Veen, 2013. "International education and economic growth," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-13, December.
    18. Jacek Liwiński, 2019. "Does it pay to study abroad? Evidence from Poland," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(3), pages 525-555, February.
    19. Laura Thissen & Sjef Ederveen, 2006. "Higher education; time for coordination on a European level?," CPB Discussion Paper 68.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    20. Di Pietro Giorgio & European Commission & IZA, 2022. "Studying abroad and earnings: A meta‐analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1096-1129, September.

    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:taf:edecon:v:18:y:2010:i:2:p:191-205. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CEDE20 .

    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.