Do international students crowd-out or cross-subsidize Americans in higher education?

Recent growth in international enrollment at U.S. universities has raised controversy. While critics accuse international students of displacing American students, university administrators have argued that they provide much needed tuition revenue. This paper examines how international students impa...

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Bibliographic Details
Published inJournal of public economics Vol. 156; pp. 170 - 184
Main Author Shih, Kevin
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.12.2017
Subjects
Cross-subsidize
Crowd-out
Graduate education
International students
International students
Crowd-out
F22
I21
Cross-subsidize
Graduate education
I23
J11
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Summary:Recent growth in international enrollment at U.S. universities has raised controversy. While critics accuse international students of displacing American students, university administrators have argued that they provide much needed tuition revenue. This paper examines how international students impact domestic enrollment, focusing on a unique boom and bust in international matriculation into U.S. graduate programs from 1995 to 2005. Overall foreign students appear to increase domestic enrollment. This positive effect is linked to cross-subsidization, whereby high net tuition payments from foreign students help subsidize the cost of enrolling additional domestic students. •Examines the impact of international students on domestic enrollment in U.S. graduate education•On average, exogenous inflows of international students increase domestic enrollment•Positive effects are due to cross-subsidization–high net tuition revenue from international students helps offset the costs of enrolling additional domestic students
ISSN:0047-2727
1879-2316
DOI:10.1016/j.jpubeco.2017.10.003