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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Published in | Journal of public economics Vol. 156; pp. 170 - 184 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
Elsevier B.V
01.12.2017
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Subjects | |
Online Access | Get full text |
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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 |
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ISSN: | 0047-2727 1879-2316 |
DOI: | 10.1016/j.jpubeco.2017.10.003 |