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

Michel Beine (), Marco Delogu () and Lionel Ragot ()

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

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.

Keywords: Foreign Students; Tuition fees; Location choice; University quality (search for similar items in EconPapers)
JEL-codes: F22 H52 I23 O16 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-edu, nep-eur, nep-mig and nep-upt
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