Education Policy, International Students and Migration Flows
Few forces have shaped, and continue to shape, the world as much as migration. In countries like the United States, Canada and Australia, most of the population has immigrated during less than two hundred years, or are descendents of these recent immigrants. Also Denmark and other Western European countries have experienced significant immigration during the last decades. Due to aging populations, Western Europe is expected to need significant immigrant flows to maintain its high standard of living. Understanding the dynamics of international migration is of paramount importance for education and immigration policy. Denmark attracts a significant number of foreign students, partly due to the absence of tuition fees. Is this a good or bad policy from the perspective of Danish tax payers? Answering such a question requires taking into account the dynamics of migration, more specifically, how the student flows affect migration. There are no previous studies on this link. Previous studies, like Pedersen, Pytlikova and Smith (2004), take into account many of the other important determinants of migration flows, like network effects and migration policy changes.
You can read the Working paper Student Flows and Migration: An Emperical Analysis by Panu poutvaara & Axel Dreher, IZA DP no. 1612 here