Abstract
We examine the impacts of international students on the graduation performance of universities in the states of Illinois and California, U.S.A. Using data on enrollment and graduation – disaggregated by universities, programs, and types of students – we follow two methods: a two-stage method and a one-step method. In the first stage of the two-stage method, we estimate university ‘premiums’ on graduations, and in the second stage, we examine how these premiums are affected by the graduation rates of international students. In the one-step method, we examine how international students affect the graduation of native students and of all students, separately for master's and PhD degrees, after controlling for enrollments and a number of program-specific and university-specific characteristics. In both methods, we allow for possible two-way causality. Our estimates suggest that international students generate positive externalities on the university graduation premiums among both native students and all students.
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