Public and Private Education in an Integrated Europe: Studying to Migrate and Teaching to Stay? |
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| Authors: | Panu Poutvaara |
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| Institution: | 1. University of Helsinki, FI‐00014 Helsinki, Finland panu.poutvaara@helsinki.fi;2. Earlier versions of this paper were presented in 2004 in seminars at WZB in Berlin and the conference Advanced Perspectives on Migration and Mobility in Bonn, in 2005 in seminars at the DG Employment, Social Affairs and Equal Opportunities in Brussels and Dortmund, at the Annual Meeting of the Public Choice Society in New Orleans, the CESifo Area Conference on Public Sector Economics in Munich, a workshop in Rotterdam, and the IIPF meeting in Jeju, South Korea, in 2006 in the Nordic Workshop on Tax Policy and Public Economics in Bergen, and in 2007 in the CESifo Area Conference on Employment and Social Protection in Munich. I am grateful to two anonymous referees, Carlo Devillanova, C. Simon Fan, K?re Hagen, Tatu Hirvonen, Katarina Keller, Kai Konrad, Oded Stark, Silke Uebelmesser, two anonymous reviewers for the conference in Bonn, and seminar and conference participants for useful comments. All remaining errors are mine. I acknowledge financial support from the Danish Social Science Research Council and the Yrj? Jahnsson Foundation, without implicating the sponsors for the views expressed. |
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| Abstract: | This paper investigates public and private choices between internationally applicable and country‐specific education when graduates are mobile. Human capital depends on innate skills and study effort with either type of education. It is shown that national governments provide too few students with internationally applicable education, and too many with country‐specific education. This effect is mitigated, but not entirely eliminated, by the introduction of a graduate tax, according to which graduates are required to pay part of their taxes to the country where they received their education, regardless of residence. However, private educational choices are socially optimal with suitably differentiated tuition fees. |
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| Keywords: | Public education private education migration European Union common labor market H52 I28 F22 J24 J61 |
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