Can Conditional Student Aid Increase the Labor Supply of Foreign Students?

Asbjoern Juul Petersen
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Asbjoern Juul Petersen: Department of Economics, University of Copenhagen

No 25-13, CEBI working paper series from University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI)

Abstract: In this paper, I investigate the effects of offering conditional student aid to foreign students on their labor supply in Denmark. I utilize a natural experiment created by an EU court ruling in 2013, deciding that foreign students had the right to a monthly student aid subsidy on equal terms with Danish students provided they work 10-12 hours per week, alongside their studies. I hypothesize, that this ruling can potentially increase labor supply of foreign students along three margins: i) A higher inflow of foreign students, ii) An increased labor supply during studies, and iii) An increased labor supply after studies. I use administrative data from Statistics Denmark to test these hypotheses. While I find an increased labor supply of foreign students during their studies, my results do not point to an increased inflow of students nor to an increased labor supply after ended studies.

Keywords: Labor supply; foreign students; student aid (search for similar items in EconPapers)
JEL-codes: H52 J22 J61 (search for similar items in EconPapers)
Pages: 61
Date: 2025-11-14
New Economics Papers: this item is included in nep-eur, nep-lma and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kucebi:2513

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