Human Capital Portability and International Student Migration

Abstract

This paper examines how human capital portability frictions affect the quantity andthe quality of international student migration. Using administrative data on collegeenrolment in Spain, it evaluates a reform that lifted the requirement to take the Spanishend-of-high-school exam for foreign students from a subset of countries. The reformincreased student migration from treated countries by 50%, compared to migrationfrom control countries. Post-reform migrants have lower predicted test scores but stilloutperform native students. The results suggest that multilateral diploma recognitionscan significantly increase international student migration without large costs in studentmigrant quality, and with positive effects on average student quality.