Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288499 
Year of Publication: 
2020
Citation: 
[Journal:] International Tax and Public Finance [ISSN:] 1573-6970 [Volume:] 27 [Issue:] 5 [Publisher:] Springer US [Place:] New York, NY [Year:] 2020 [Pages:] 1224-1263
Publisher: 
Springer US, New York, NY
Abstract: 
In the last years, there has been a shift toward more private financing of higher education in many countries. At the same time, student mobility has substantially increased. This paper analyzes in a two-region model the impact of student mobility on region-specific higher education quality with private funding. Individuals decide whether and where to study based on their individual ability and the implemented quality. We show that mobility of students affects educational quality in very different ways depending on the probability of return migration. With full return migration, quality is optimally provided which is in stark contrast to the underprovision result in the case of tax financing. On the contrary, low return migration and thus more competition for students countervail the efficient provision of quality and result in too little differentiated levels or too high symmetric levels. This is in line with the overprovision result with tax financing.
Subjects: 
Higher education
Migration
Educational quality
Vertical differentiation
Welfare criterion
JEL: 
H75
I28
R23
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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