Study looks at link between international enrollment increases and state appropriation declines

Inside Higher Ed: As state spending for public universities go down, international student enrollment goes up. A newly published working paper seeks to quantify this relationship, estimating that for the period between 1996 and 2012, a 10 percent reduction in state appropriations is associated with a 12 percent increase in international undergraduate enrollment at public research universities – and a 17 percent increase at the most research-intensive public universities, the flagships and other institutions that are members of the exclusive Association of American Universities (AAU).

The paper, available for $5 from the National Bureau of Economic Research and authored by John Bound, Breno Braga, Gaurav Khanna, and Sarah Turner, concludes that expanding foreign undergraduate enrollment “is an important channel through which public research universities buffer changes in state appropriations. While additional revenue from in-state tuition increases appears [to] recoup a large fraction of the fall in appropriations, research universities would have had to navigate reductions in resources per student or yet larger increases in in-state tuition in the absence of the large pool of foreign students.”

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