Four Essays on University Economics - KOPS - Universität Konstanz
Four Essays on University Economics - KOPS - Universität Konstanz
Four Essays on University Economics - KOPS - Universität Konstanz
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3.3.3 Legal Situati<strong>on</strong><br />
Return of foreign students<br />
In the period between 1990 and 2004, German migrati<strong>on</strong> laws obliged foreign students to<br />
return to their home countries after graduati<strong>on</strong>. Even though some students might have<br />
been forced to return by these laws, many students found a way to stay. The enforcement<br />
of these laws was, thus, not too strict.<br />
Graduates, who married a German spouse, were allowed to stay in Germany. Unfortu-<br />
nately, we do not know, when students in our sample married and what nati<strong>on</strong>alities their<br />
spouses are. However, many unmarried students also stayed in Germany. Migrati<strong>on</strong> agen-<br />
cies made the decisi<strong>on</strong> whether graduates were allowed to stay <strong>on</strong> a case-by-case basis. It<br />
was comm<strong>on</strong> practice, however, that graduates who found adequate employment in Ger-<br />
many or who planned further educati<strong>on</strong> in Germany were allowed to stay. Furthermore,<br />
we know of no informal rules which guided migrati<strong>on</strong> agencies’ decisi<strong>on</strong>s.<br />
In the years 1993, 1997 and 2000 migrati<strong>on</strong> laws in Germany were changed. In 1993 the<br />
right of asylum was restricted, in 1997 the legal positi<strong>on</strong> of foreigners living in Germany<br />
was improved and in 2000 the green card was introduced and c<strong>on</strong>diti<strong>on</strong>s for naturalizati<strong>on</strong><br />
were changed. Even though these changes were not explicitly aimed at students, they<br />
might have affected their return decisi<strong>on</strong>. Apart from the change in 1993, the changes<br />
should have had a positive effect <strong>on</strong> the propensity to stay.<br />
Since 2005 foreign students are allowed to stay in Germany after graduati<strong>on</strong> to search<br />
for employment. Accordingly, we expect that more students choose to stay than before.<br />
3.4 Data and Empirical Strategy<br />
For our analysis we use data of 2,436 students from 76 countries who were sp<strong>on</strong>sored<br />
by the KAAD and who finished their study period in Germany between 1990 and 2005.<br />
The largest group of students came from Poland (359 students), followed by China (165<br />
students) and Romania (134 students). We perform a durati<strong>on</strong> analysis to investigate<br />
which determinants have an impact <strong>on</strong> the decisi<strong>on</strong> of these graduates whether and when<br />
to return to their home countries after they finished their studies in Germany. We assume<br />
that at the end of the study period in the host country a graduate decides whether to stay<br />
or to return and that he or she revises this decisi<strong>on</strong> regularly. A graduate who did not<br />
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