Financing Higher Education in a Mobile World

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper analyzes how integrated labor markets affect the financing of higher education. For this, we employ a general-equilibrium model with overlapping generations and individuals who differ in their abilities. At the first stage, governments can choose the quality of education and the financing system. At the second stage, individuals make their education and migration decisions given the governmental framework for higher education and the mobility assumptions. Terms of use: Documents inIn a closed economy and in the presence of imperfect credit markets, a mix of tax-and feefinancing is optimal. In integrated labor markets, countries have an incentive to attract skilled workers and to free-ride on education provided by other countries. When only skilled workers are mobile, there is a sub-optimal shift from taxes to fees and the number of students is too low. When also students can migrate, there is a countervailing force such that maintaining the optimal financial mix becomes possible.JEL-Code: I200, H700.

Global Higher Education: Development and Implications

“…On the other hand, globalization rests on the first world-wide systems of communications, information, knowledge and culture, tending towards a single world community (Brown, Lauder, & Ashton, 2008). First, the continuously extending networks based on travel, mobile phones, broad-band Internet and other information and communications technologies (ICTs), are creating new techniques for human association, of unprecedented scale and flexibility; spanning cities and nations with varied cultures and levels of economic development (Demange, Fenge, & Uebelmesser, 2014;Douglas, King, & Feller, 2009;Fallis, 2007). And, second, the networks enable the complex data transfers essential to knowledge-intensive production (Feigenbaum & Iqani, 2015;Goldstein, 2004).…”

Financing Higher Education When Students and Graduates Are Internationally Mobile

“…In the general-equilibrium setting of Wildasin (2000), e.g., tax level and tax structure are the choice variables while the simultaneous competition in the tax rate and a further fiscal instrument is central in Andersson and Konrad (2003), Haupt and Janeba (2009) and Krieger and Lange (2010). 21 This part is based on Demange, Fenge, Uebelmesser (2014). which country to work and earn the wage income of a skilled worker there.…”

The Political Economics of Higher-Education Finance for Mobile Individuals

“…The population in each region consists of households of one parent and one child, and we assume that all decisions are 6 See also Demange et al (2013) taken by the parent. Households are heterogeneous in two dimensions: children's ability a and parents' endowment ω.…”