Working Paper: NBER ID: w14962
Authors: Richard B. Freeman
Abstract: This study documents the rapid spread of higher education around the world and the consequent reduced share of the US in the world's university students and graduates. It shows that the proportion of young persons who go to college has risen in many advanced countries to exceed that in the US while human capital leapfrogging in the huge populous developing countries has produced massive increases in their university educated work forces. One result of the expansion of higher education overseas is that the US has come to rely extensively on the immigration of highly educated persons to maintain a lead position in science and technology. International students make up roughly half of university graduate immigrants to the US, which makes policies toward those students a key determinant in the country's success in attracting immigrant talent.
Keywords: higher education; globalization; immigration; labor market
JEL Codes: J01; J2; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| global expansion of higher education (I23) | increased supply of highly educated immigrants in the US (J69) |
| increased supply of highly educated immigrants in the US (J69) | benefits to the US economy (O51) |
| increased number of graduates in other countries (F29) | competition for jobs and resources in the US (J69) |
| global expansion of higher education (I23) | decline in US's relative position in proportion of university-educated individuals (F66) |
| decline in US's relative position in proportion of university-educated individuals (F66) | endangering US's lead in science and technology (F52) |
| influx of international students into the US (F22) | supply of highly educated workers in the US (J24) |
| supply of highly educated workers in the US (J24) | enhancement of US's comparative advantage in technology-intensive sectors (O39) |