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The Role of Fees in Foreign Education: evidence from Italy and the UK

Author

Listed:
  • Michel Beine

    (CREA, Université du Luxembourg)

  • Marco Delogu

    (CREA, Université du Luxembourg)

  • Lionel Ragot

    (Université de Paris Ouest)

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 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 students migration flows at the university level for Italy and the UK. The particular institutional setting of the two destination countries allows 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 quality of education. The estimations find also support for an important role of additional destination-specific variables such as host capacity, expected return of education and cost of living in the vicinity of the university.

Suggested Citation

  • 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.
    • Handle: RePEc:luc:wpaper:16-06
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    File URL: https://wwwen-archive.uni.lu/content/download/96717/1168751/file/2016_06%20The%20Role%20of%20Fees%20in%20Foreign%20Education_%20evidence%20from%20Italy%20and%20the%20UK..pdf
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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," Working Papers hal-04141620, HAL.
    2. 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.

    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
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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