Student Mobility: Implications for the ASEAN Labor

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1 Trends and Patterns of Inter- and Intra-ASEAN Student Mobility: Implications for the ASEAN Labor Market Emily Christi A. Cabegin Paper presented at the Asian Conference on Globalization and Labor Administration: Cross-Border Labor Mobility, Social Security and Regional Integration November 19-21, 2014, Manila, Philippines No written or electronic reproduction of this document without the author s permission

2 Increased globalization, deepening regionalization was associated with a heightened increase in the international mobility of students. The number of people studying in a country other than the country of their citizenship doubled in the past decade from 2.1 million in 2000 to 4.5 million in 2012.

3 Fig 1. Number (in M) and annual growth rate of enrolled foreign students, N(in M) Growth rate Source: Compiled from UIS Database

4 Labor implications of international student mobility High student mobility High labor mobility Studying abroad increases the probability of working abroad by: 15 percentage points (Parey & Waldinger, 2011) percentage points (Jahr & Teichler, 2001) 50 percentage points (Oosterbeck & Webbink, 2006)

5 Labor implications of international student mobility European Commission(2012): the percent of international students that later obtained employment was: 5-10 % (Estonia) 22 % (UK) 50 % (Germany) 70% (Norway)

6 Reasons why international students work abroad (Parey & Waldinger, 2011) Studying abroad: - increases social capital and network, - increases probability of foreign marriages, unions - undertaken by highly selective students with higher taste of and greater adaptability to foreign cultures

7 60.0 Fig 2. Percent share of international mobile students, by region, Africa Asia Europe North America South America Oceania Source: Compiled from UIS Database

8 Fig 3. Percentage distribution of outbound students from Asia by region of origin, SEA Central Asia West Asia South Asia East Asia Source: Compiled from UIS Database

9 Fig 3. Percentage distribution of ASEAN outbound students by country of origin, Brunei Darussalam Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Viet Nam Source: Compiled from UIS Database

10 Top 10 countries of origin of mobile students (2013) 1 China 694,400 2 India 189,500 3 Republic of Korea 123,700 4 Germany 117,600 5 Saudi Arabia 62,500 6 France 62,400 7 United States 58,100 8 Malaysia 55,600 9 Vietnam 53, Iran 51,600 Source: UIS Database

11 Top 10 countries of destination of mobile students (2013) 1 United States 18% 2 United Kingdom 11% 3 France 7% 4 Australia 6% 5 Germany 5% 6 Russian Federation 4% 7 Japan 4% 8 Canada 3% 9 China 2% 10 Italy 2% Source: UIS Database

12 Country % distribution of inbound students to ASEAN, 2012 Growth rate ( ) Brunei D Indonesia Lao PDR Malaysia Philippines Singapore Thailand Viet Nam ASEAN 100 (161,240) Source: Compiled from UIS Database

13 Student mobility rate (%) 2012 Country Inbound Outbound Net Brunei Cambodia (2006) Indonesia Lao PDR Malaysia (2011) Myanmar (2007) Philippines (2009) Singapore Thailand Viet Nam

14 Determinants of student mobility Internationalization increased demand for skilled manpower with international language competency in business situations across cultures (OECD, 2008) Rapid economic growth in the past decade for emerging countries in Asia countries have made education overseas more affordable.

15 Constant GDP growth GDP per capita Country rate (%) (US$) PPP 2013 China ,904 India 7.2 5,410 Korea ,140 Source: Compiled from WB Database

16 Constant GDP growth GDP per capita Country rate (%) (US$) PPP 2013 Brunei ,759 Cambodia 7.8 3,042 Indonesia 5.4 9,559 Lao PDR 7.3 4,812 Malaysia ,298 Philippines 4.8 6,533 Singapore ,744 Thailand ,390 Viet Nam 6.5 5,213 Source: Compiled from WB Database

17 Determinants of student mobility - Deepening regionalization increased academic and cultural exchange - Higher education as a source of revenue and the need for institutions to improve competitive advantage through enhanced visibility at the international level - enhance the quality of national education systems and capacity for R&D

18 Determinants of student mobility International mobile students source of skilled workers in the labor market Why international students are preferred over regular migrants (SVR, 2012): - locally relevant education with fully recognized education credentials - familiarity or adaptability to host country s culture, language, laws - better labor market outcomes (Sweetman & Warman, 2009)

19 Determinants of student mobility Pull factors: -countries where English or French is either widely spoken or is the official language (US, UK, Australia, France) - countries with higher employment rate and more open immigration policies (Australia, Canada and New Zealand) are attractive to international migrants - countries with a high quality of education

20 Govt education expenditure per student (US$), 2012 US 10,387 Brunei 1,403 (2010) UK 9,357 Cambodia 32 Australia 12,484 Indonesia 304 Japan 10,993 Lao PDR 46 (2005) France 7,836 Philippines 173 (2008) Germany 7,332 Malaysia 1,702 Singapore 4,347 Thailand 2,097 Vietnam 338 Source: Compiled from UIS Database

21 Determinants of student mobility Pull factors: - establishment of bilateral/multilateral agreements including academic partnerships - Of 20 member states of the EU(European Commission, 2012): - China partnered with 18 member states - India (11), Japan (7), Vietnam (8) and Indonesia (1)

22 Determinants of student mobility Pull factors: - Harmonization of Higher Education Institutions (HEIs) in the region facilitates international student mobility - ASEAN qualification framework - Synchronized academic calendars - Credit transfer schemes

23 Transfer credit systems Greater Mekong Subregion Transfer Credit System - for all higher education institutions in Vietnam, Lao PDR, Cambodia, Myanmar, Thailand and China, plus Japan and Korea ASEAN Transfer Credit System - within the 23 Higher Education member institutions of the ASEAN University Network (AUN)

24 Brunei Darussalam: Universiti Brunei Darussalam Cambodia: Royal University of Law and Economics Royal University of Phnom Penh Indonesia: Institut Teknologi Bandung Universitas Airlangga Universitas Gadjah Mada Universitas Indonesia Philippines: Ateneo de Manila University De La Salle University University of the Philippines

25 Malaysia: Universiti Kebaangsan Malaysia Universiti Malaya; Universiti Putra Malaysia Universiti Sains Malaysia Singapore: Nanyang Technological University National University of Singapore Singapore Management University Thailand: Vietnam: Burapha University; Chiangmai University Chulalongkorn University Mahidol University Vietnam National University (Hanoi) Vietnam National University (HCMC)

26 Type of access to the labor market: during study - up to a max of 10 hrs/wk - up to a max of 20 hrs/wk Country Austria, UK, Slovak Republic, Netherlands, Luxembourg Belgium, Bulgaria, Cyprus, Ireland, Italy, Latvia, Norway, Lithuania - up to a max of 25 hrs/wk Finland - no restriction on duration Sweden, Poland, Czech Republic Source: SVR (2012)

27 Type of access to the labor market: during study - up to a max of 16 hrs/wk if student is enrolled in selected list HEIs - international students not allowed to work while studying, otherwise they are liable to be fined RM10,000 or jailed for a min of 6 months - students cannot work without a work permit, otherwise they are liable to be fined 50, ,00 baht. - foreign students can work only upon securing the consent of the Commissioner of Immigration Country Singapore Malaysia Thailand Philippines

28 Type of access to the labor market: after study Country - permitted to stay if offered a job or have a PhD Belgium - permitted to stay if employed in research Cyprus - post-study scheme that allow international students to stay for a period of time to search for jobs -can stay to work if offered a skilled job with a minimum salary of 20,000 France, the Netherlands (6 months); Germany ( 1 year) and UK (2 years). UK Source: SVR (2012)

29 ASEAN Economic Community towards free movement of goods, investments, skilled labor and capital within the region - Increased international students mobility has both opportunities as cited earlier but also challenges: - risk of brain drain

30 Country 2014 Country capacity index (rank/144) to: attract talent retain talent Cambodia 3.6 (56) 3.7 (51) Indonesia 4.3 (25) 4.2 (32) Lao PDR 3.4 (73) 4.1 (34) Malaysia 5.0 (12) 5.1 (9) Myanmar 2.7 (113) 1.7 (144) Philippines 3.3 (82) 3.5 (60) Singapore 6.0 (2) 5.2 (8) Thailand 3.9 (36) 4.1 (33) Viet Nam 3.4 (74) 3.2 (84) Source: Compiled from GCI

31 Conclusion Need for each ASEAN member country to have complete information on their specific requirements for and competencies of skilled manpower for sustained growth and industrial development for the country and region - formulate the policies on acceptance and retention of foreign students on the basis of needs and competency assessment. - selective admission of skilled migrants to economic sectors where there is validated skill shortage

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