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The Role of Fees in Foreign Education: Evidence From Italy

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  • Lionel Ragot

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Marco Delogu
  • Michel Beine

Abstract

This 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 from 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. We control for the potential endogeneity of tuition fees through a classical IV approach based on the status of the university. 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

  • Lionel Ragot & Marco Delogu & Michel Beine, 2017. "The Role of Fees in Foreign Education: Evidence From Italy," Working Papers hal-04141621, HAL.
    • Handle: RePEc:hal:wpaper:hal-04141621
    Note: View the original document on HAL open archive server: https://hal.science/hal-04141621
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    Cited by:

    1. Leonardo Mazzoni & Massimo Riccaboni & Erik Stam, 2024. "Entrepreneurial Ecosystems and Interregional Flows of Entrepreneurial Talent," Papers in Evolutionary Economic Geography (PEEG) 2426, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2024.
    2. 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.
    3. L. Ciucci & C. Detotto & B. Biagi & M. Pulina, 2023. "University study programmes and students dynamics," Working Paper CRENoS 202302, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    4. Elena Cottini & Paolo Ghinetti & Simone Moriconi, 2019. "Higher Education Supply, Neighbourhood effects and Economic Welfare," Working Papers 2019-EQM-05, IESEG School of Management.
    5. Murat Demirci, 2021. "Rising Political Populism and Outmigration of Youth as International Students," Koç University-TUSIAD Economic Research Forum Working Papers 2123, Koc University-TUSIAD Economic Research Forum.
    6. Agnese Sechi & Skerdilajda Zanaj & Gabriele Lombardi, 2024. "Mothers and students’mobility," DEM Discussion Paper Series 24-08, Department of Economics at the University of Luxembourg.
    7. Anna-Theresa Renner & Dieter Pennerstorfer, 2020. "Modeling inter-regional patient mobility: Does distance go far enough?," Economics working papers 2020-04, Department of Economics, Johannes Kepler University Linz, Austria.
    8. Naito, Takumi & Zhao, Laixun, 2020. "Capital accumulation through studying abroad and return migration," Economic Modelling, Elsevier, vol. 87(C), pages 185-196.
    9. Demirci, Murat, 2023. "Youth responses to political populism: Education abroad as a step toward emigration," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 653-673.
    10. Batista, Catia & Costa, David M & Freitas, Pedro & Lima, Gonçalo & Reis, Ana B, 2024. "What Matters for the Decision to Study Abroad? A Lab-in-the-Field Experiment in Cape Verde," IZA Discussion Papers 17096, Institute of Labor Economics (IZA).
    11. Gildas Kadoukpè Magbondé, 2021. "How Sub-Saharan African Countries Students Choose Where to Study Abroad: The Case of Benin," Social Inclusion, Cogitatio Press, vol. 9(1), pages 278-287.
    12. Beine, Michel & Peri, Giovanni & Raux, Morgan, 2023. "International college students’ impact on the US skilled labor supply," Journal of Public Economics, Elsevier, vol. 223(C).
    13. Elena Cottini & Paolo Ghinetti & Simone Moriconi, 2019. "On the Productivity Effects of Higher Education Supply: Evidence from Italian History," CESifo Working Paper Series 7483, CESifo.
    14. Delogu, Marco & Lagravinese, Raffaele & Paolini, Dimitri & Resce, Giuliano, 2024. "Predicting dropout from higher education: Evidence from Italy," Economic Modelling, Elsevier, vol. 130(C).
    15. Iryna Kushnir & Nuve Yazgan, 2023. "The politics of higher education: the European Higher Education Area through the eyes of its stakeholders in France and Italy," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    16. Neeraj Kaushal & Mauro Lanati, 2019. "International Student Mobility: Growth and Dispersion," NBER Working Papers 25921, National Bureau of Economic Research, Inc.

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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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