The globalization of postsecondary education: The role of international students in the US higher education system

J Econ Perspect. 2021 Winter;35(1):163-184. doi: 10.1257/jep.35.1.163.

Abstract

In the four decades since 1980, U.S. colleges and universities have seen the number of students from abroad quadruple. This rise in enrollment and degree attainment affects the global supply of highly educated workers, the flow of talent to the U.S. labor market, and the financing of U.S. higher education. Yet, the impacts are far from uniform, with significant differences evident by level of study and type of institution. The determinants of foreign flows to U.S. colleges and universities reflect both changes in student demand from abroad and the variation in market circumstances of colleges and universities, with visa policies serving a mediating role. The consequences of these market mechanisms impact global talent development, the resources of colleges and universities, and labor markets in the U.S. and countries sending students.