On the importance of macroeconomic factors for the foreign student’s decision to stay in the host country
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The paper tests empirically whether the macroeconomic variables suggested by migration theories have a significant impact on the foreign student’s decision to stay in their host country. The analysis is based on the combination of country level variables and individual register data. The mean labour income difference between the home and the host countries significantly negatively affects the student’s probability of staying in the host country. The differences in the unemployment rates, welfare benefits, business cycles do not affect the probability of staying. The more hierarchical society in the home country is, the less likely male students are to stay. The employment outcome of student migrants has also been analysed and it is positively related to English language knowledge, but not to the abovementioned macroeconomic and culture related variables.