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The Unintended Consequences Of International Student Shortage: Evidence From A Policy Reform In South Korea, Syngjoo Choi, Chung-Yoon Choi, Kim, Jongkwan Lee

Research Collection School Of Economics

We study the role of international students in the higher education sector and the local economy by exploiting a policy reform in South Korea that significantly restricted the admission of foreign students to local universities. By comparing the pre- and post-reform differences between universities with different pre-reform shares of international student enrollment, we find limiting the inflow of international students significantly worsened the financial outcomes of local universities. We also document that a reduction in the number of international students in local areas resulted in decreases in native employment, mainly in sectors such as agriculture and business support services, suggesting …