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Does the United States Benefit from the Foreign Student Program?

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Does the United States Benefit from the Foreign Student Program?

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Foreign students generate three distinct types of measurable costs and benefits. First, 13 percent of foreign students remain in the United States, permanently increasing the number of skilled workers in the labor force. Second, foreign students, while enrolled in schools, are an important part of the workforce at those institutions, particularly at large research universities. They help teach large undergraduate classes, provide research assistance to the faculty, and make up an important fraction of the bench workers in scientific labs. Finally, many foreign students pay tuition, and those revenues may be an important source of income for educational institutions. Consider first the benefits accruing from the 13 percent of the foreign students who manage to obtain a green card and remain in the United States permanently. These immigrants reduce wages slightly in the labor market for skilled workers, and raise the profits of the firms that employ them. As with free trade, the gains ac

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