"Brain Drain" or "Brain Gain"? Students' Loyalty to their Student Town: Field Evidence from Norway

In the global economy regions fight a two-front 'war' to attract young people. On the one hand, they compete against more urban areas because young people leave home to study and do not return to their home region ('brain drain'). On the other hand, they struggle to attract new residents, students and entrepreneurs to their local region ('brain gain'). The context is a student town of a strong industrial region characterized by a net export of young people and an increasing demand for highly qualified labour. The purpose is to gain insight into how student loyalty to a student town may be enhanced. A partial least square path modelling approach is used to estimate a structural equation model of student town loyalty. One finding is that the creation of student town satisfaction has more influence on student town loyalty than reputation building. 'Social activity' is the most important loyalty driver. This antecedent is mediated through student town satisfaction and reputation, as well as university college reputation. The town municipalities and the university college should thus be coordinated in their effort to increase student town loyalty to bring down the 'brain drain' and increase the 'brain gain' in the region.