nep-edu New Economics Papers
on Education
Issue of 2024‒07‒29
five papers chosen by
Nádia Simões, Instituto Universitário de Lisboa 


  1. Stakes and Signals: An Empirical Investigation of Muddled Information in Standardized Testing By Germán J. Reyes; Evan Riehl; Ruqing Xu
  2. Building a Wall Around Science: The Effect of U.S.-China Tensions on International Scientific Research By Robert Flynn; Britta Glennon; Raviv Murciano-Goroff; Jiusi Xiao
  3. Emigration Prospects and Educational Choices: Evidence from the Lorraine-Luxembourg Corridor By Michel Beine; Vincent Fromentin; Javier Sánchez Bachiller
  4. Brain gain vs. brain drain. The effects of universities' mobile students on territorial inequalities By I. Etzo; R. Paci; C. Usala
  5. University financing: sustainability, efficiency and redistribution By Antonio Cabrales; Maia Güell; Rocio Madera; Analia Viola

  1. By: Germán J. Reyes; Evan Riehl; Ruqing Xu
    Abstract: We examine a natural experiment in Brazil in which similar students took the same standardized test as either a low-stakes school accountability exam or a high-stakes admission exam for the country's top universities. Using administrative data and a difference-in-differences design, we find that test score gaps between high- and low-income students expanded on the high-stakes exam, consistent with wealthy students engaging in test prep. Yet the increase in stakes made scores more informative for students' college outcomes. Thus the "muddling" of information on natural ability and test prep improved the quality of the score signal, although it also exacerbated inequality.
    JEL: I23 I24 J24 M5
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:32608&r=
  2. By: Robert Flynn; Britta Glennon; Raviv Murciano-Goroff; Jiusi Xiao
    Abstract: This paper examines the impact of rising U.S.-China geopolitical tensions on three main dimensions of science: STEM trainee mobility between these countries, usage of scientific works between scientists in each country, and scientist productivity in each country. We examine each dimension from a “U.S.” perspective and from a “China” perspective in an effort to provide evidence around the asymmetric effects of isolationism and geopolitical tension on science. Using a differences-in-differences approach in tandem with CV and publication data, we find that between 2016 and 2019 ethnically Chinese graduate students became 16% less likely to attend a U.S.-based Ph.D. program, and that those that did became 4% less likely to stay in the U.S. after graduation. In both instances, these students became more likely to move to a non-U.S. anglophone country instead. Second, we document a sharp decline in Chinese usage of U.S. science as measured by citations, but no such decline in the propensity of U.S. scientists to cite Chinese research. Third, we find that while a decline in Chinese usage of U.S. science does not appear to affect the average productivity of China-based researchers as measured by publications, heightened anti-Chinese sentiment in the U.S. appears to reduce the productivity of ethnically Chinese scientists in the U.S. by 2-6%. Our results do not suggest any clear “winner, ” but instead indicate that increasing isolationism and geopolitical tension lead to reduced talent and knowledge flows between the U.S. and China, which are likely to be particularly damaging to international science. The effects on productivity are still small but are likely to only grow as nationalistic and isolationist policies also escalate. The results as a whole strongly suggest the presence of a “chilling effect” for ethnically Chinese scholars in the U.S., affecting both the U.S.’s ability to attract and retain talent as well as the productivity of its ethnically Chinese scientists.
    JEL: F22 F6 O3
    Date: 2024–06
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:32622&r=
  3. By: Michel Beine; Vincent Fromentin; Javier Sánchez Bachiller
    Abstract: An extensive literature has documented the incentive effect of emigration prospects in terms of human capital accumulation in origin countries. Much less attention has been paid to the impact on specific educational choices. We provide some evidence from the behavior of students at the University of Lorraine that is located in the northeast of France and close to Luxembourg, a booming economy with attractive work conditions. We find that students who paid attention to the foreign labor market at the time of enrollment tend to choose topics that lead to occupations that are highly valued in Luxembourg. These results hold when accounting for heterogeneous substitution patterns across study fields through the estimation of advanced discrete choice models. Incentive effects of emigration prospects are also found when accounting for the potential endogeneity of the interest for the foreign labor market using a control function approach based on the initial locations of these students at the time of enrollment. Consistently, students showing no attention to the foreign labor market are not subject to the incentive effect of emigration prospects.
    Keywords: brain gain, emigration prospects, educational choices, discrete choice modelling, labor markets
    JEL: C25 F22 J61
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11158&r=
  4. By: I. Etzo; R. Paci; C. Usala
    Abstract: Our study examines the relationship between university student mobility and local economic dynamics. Universities are pivotal in shaping societies and economies as hubs of knowledge creation, innovation, and cultural exchange. While recent research underscores the significant impact of university students on local development, there is a notable gap in understanding the distinct effects of mobile versus resident students on the local economy. Using data from 90 NUTS3 provinces in Italy between 2013 and 2019, we investigate the spatial inequalities generated by student mobility. Our focus is on secondlevel university students, who are closer to entering the labor market and thus have a more immediate impact on the local economy. Employing a standard fixed effects growth model, our findings reveal that incoming students significantly boost the economic growth of the destination province, particularly in the Center-North regions (brain gain). Conversely, the southern provinces suffer reduced growth due to the loss of talented students (brain drain). Thus, student mobility exacerbates the enduring spatial disparities in Italy contributing to uneven economic development across regions.
    Keywords: spatial disparities;brain drain;mobile university students;growth model
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:cns:cnscwp:202411&r=
  5. By: Antonio Cabrales; Maia Güell; Rocio Madera; Analia Viola
    Abstract: Students across the globe employ a diverse array of financial mechanisms to fund their higher education: from grants to subsidies. Even within Europe, there is a significant variance in financing systems. For instance, the Nordic countries rely on a model of generous scholarships. Conversely, in the United Kingdom and the Netherlands, loan-based financing is more prevalent. Meanwhile, nations such as Austria, France, and Spain, among others, exhibit less developed financial instruments—private or public— and have long used direct subsidies to educational institutions funded with general taxes. When the main part of university resources is publicly and directly provided, government budget cuts have a strong impact on the survival and quality of tertiary education institutions. In the face of an ageing population and large and increasing public deficits, we analyze whether a subsidized system of progressive Income Contingent Loans (ICL) is feasible in Spain, and how it would impact different strata of the population. We find that (1) our proposed structure is highly progressive under all specifications, with the top quarter of the distribution paying close to the full amount of the tuition and the bottom 10% paying almost no tuition; and (2) the share of total university education subsidized by the government is between 16 and 56 percentage points less than under the current system.
    Date: 2024–05
    URL: https://d.repec.org/n?u=RePEc:fda:fdapop:2024-01&r=

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