Return migration of foreign students andthe choice of non-resident tuition fees

Thomas Lange

No Ifo Working Paper No. 74, Ifo Working Paper Series from Ifo Institute for Economic Research at the University of Munich

Abstract: The paper presents a model of student migration in order to determine the optimal choice of non-resident tuition fees in a host country of higher education. Students with rational expectations consider a potential return migration in their first-round decision whether to study abroad, so that demand for the higher education system in the host country and optimal non-resident tuition fees depend on the stay rates of foreign-born graduates.A decline in stay rates of foreign students is demonstrated to induce a cutback of tuition fees if the costs of education per student are not too high. The fact that students take into account the possibility of return migration after graduation in their first-stage location decision in combination with rational expectations finally drives this result.

Keywords: tuition fees; oversea students; return migration; rationalexpectations; brain drain; preference for foreign lifestyle (search for similar items in EconPapers)
JEL-codes: D84 F22 I29 (search for similar items in EconPapers)
Date: 2009
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