. When only skilled workers are mobile, there is a sub-optimal shift from taxes to fees and the number of students is too low …. When also students can migrate, there is a countervailing force such that maintaining the optimal financial mix becomes …

The number of international students worldwide has almost doubled in the last decade. In higher education systems that … are partly tax-funded, a country's labour force might not be willing to subsidize the education of international students …, we find a significant positive correlation between the share of international students and the private funding share for …