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Paying Out and Crowding Out? The Globalisation of Higher Education

Stephen Machin () and Richard Murphy ()

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We investigate the rapid influx of overseas students into UK higher education and the impact on the number of domestic students. Using administrative data since 1994/5, we find no evidence of crowd out of domestic undergraduate students and indications of increases in the domestic numbers of postgraduate students as overseas enrolments have grown. We interpret this as a cross-subsidisation and establish causal findings using two methods. Firstly, we use the historical share of students from a sending country attending a university department as a shift-share instrument to predict enrolment patterns. Secondly, we use a change in Chinese visa regulations and exchange rates in combination with strong subject preferences as a predictor of overseas student growth.

Keywords: Overseas students; crowding out (search for similar items in EconPapers)
JEL-codes: I20 I21 I28 (search for similar items in EconPapers)
Date: 2014-09
New Economics Papers: this item is included in nep-edu, nep-eur and nep-hrm
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Related works:
Journal Article: Paying out and crowding out? The globalization of higher education (2017) Downloads
Working Paper: Paying out and crowding out? The globalization of higher education (2017) Downloads
Working Paper: Paying out and crowding out? The globalisation of higher education (2014) Downloads
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