Local Public Funding of Higher Education when Students and Skilled Workers are Mobile
نویسنده
چکیده
The interregional mobility of high skilled workers might induce an underinvestment in local public higher education when sub-federal entities independently decide on education expenditures to maximize local output. This well-known result is due to interregional spillovers and provides a justification for coordinated education policy or rather a federal intervention. However, things might change completely when taking into account the interregional mobility of students. Now, local education expenditures not only affect labor migration (through wage differentials) but also student migration flows. The model in this paper then shows that local output maximization does not necessarily imply underprovision of higher education, since regions now have an incentive to attract students as future human capital. The stay rates of graduates in equilibrium and the sensitivity of wages to migration are key determinants of local policy. Furthermore, results depend on local government objectives or rather the weighting of natives relative to foreigners. Therefore, the paper also considers natives’ preferred local policy. JEL Klassifikation : I22, J61, H77 Schlüsselwörter : Higher education, student mobility, labor mobility, local public finance Download/Reference : http://www.wiwi.uni-konstanz.de/forschergruppewiwi/ Thomas Lange University of Konstanz Department of Economics Box D133 78457 Konstanz Germany mail: [email protected] phone: +49-7531-88-2305 fax: +49-7531-88-4101 Local Public Funding of Higher Education when Students and Skilled Workers are Mobile
منابع مشابه
Low-Skilled Immigration and the Expansion of Private Schools
Low-Skilled Immigration and the Expansion of Private Schools This paper provides a political-economic model to study the impact of low-skilled immigration on the host country’s education system, which is characterized by sources of school funding, the average expenditure per pupil, and the type of parents who are more likely to send their children to publicly or privately funded schools. Four m...
متن کاملCente Unive Warb 33098
The interregional mobility of high skilled workers might induce an underinvestment in local public higher education when sub-federal entities independently decide on education expenditures to maximize local output. This well-known result is due to interregional spillovers and provides a justification for coordinated education policy or rather a federal intervention. However, things might change...
متن کاملHigher Education to 2030
Higher education drives and is driven by globalisation. It trains the highly skilled workers and contributes to the research base and capacity for innovation that determine competitiveness in the knowledge-based global economy. It facilitates international collaboration and cross-cultural exchange. Cross-border flows of ideas, students, faculty and financing, coupled with developments in inform...
متن کاملLow-skilled Immigration and Education Policy with Endogenous Fertility
This paper studies the impact of low-skilled immigration on the host country’s education policy, which is formulated by the natives via voting and refers to both school funding sources and resources in the public funded schools. When the size of low-skilled immigrants is large, it is found that wealthier natives are likely to opt out from public into private school. The effects of immigration a...
متن کاملDoes Public Education Expansion Lead to Trickle-Down Growth?
The paper revisits the debate on trickle-down growth in view of the widely discussed evolution of the earnings and income distribution that followed a massive expansion of higher education. We propose a dynamic general equilibrium model to dynamically evaluate whether economic growth triggered by an increase in public education expenditure on behalf of those with high learning ability eventuall...
متن کامل