Econometrics Modelling Approach to Examine the Effect of STEM Policy Changes on Asian Students Enrollment Decision in USA

TL;DR

This study uses econometric methods to analyze how the 2008 OPT extension policy impacted Asian students' choice to enroll in STEM majors in US universities, highlighting the policy's significant influence and individual factors affecting decisions.

Contribution

It introduces a quasi-experimental econometric approach to assess policy impacts on international student enrollment decisions, focusing on the OPT extension's effect on Asian students.

Findings

OPT extension increased Asian students' STEM enrollment

Gender and specific STEM majors influence enrollment decisions

Policy change had a significant causal effect

Abstract

Academic research has shown significant interest in international student mobility, with previous literature primarily focusing on the migration industry from a political and public policy perspective. For many countries, international student mobility plays a crucial role in bolstering their economies through financial gains and attracting skilled immigrants. While previous studies have explored the determinants of mobility and country economic policies, only a few have examined the impact of policy changes on mobility trends. In this study, the researchers investigate the influence of immigration policy changes, particularly the optional practical training (OPT) extension on STEM programs, on Asian students' preference for enrolling in STEM majors at universities. The study utilizes observational data and employs a quasi-experimental design, analysing the information using the difference-in-difference technique. The findings of the research indicate that the implementation of the STEM extension policy in 2008 has a significant effect on Asian students' decisions to enroll in a STEM major. Additionally, the study highlights the noteworthy role of individual factors such as the specific STEM major, terminal degree pursued, and gender in influencing Asian students' enrollment decisions.