HRSDC-IC-SSHRC Skills Research Initiative

Working Paper Series

Structural Incentives to Attract Foreign Students to Canada's Post-Secondary Educational System: A Comparative Analysis
by John McHale.

• Request this document (Format: PDF, 628 KB)

Abstract

Recruitment of foreign students has risen dramatically across the OECD since the early 1990s. Somewhat surprisingly for a country that has pioneered the use of skill-based immigration policies, Canada has been a relatively reluctant recruiter of foreign students. This paper provides a comparative and policy-focused examination of Canada’s participation in the “market” for foreign students. It first documents how Canada’s recruitment of foreign students compares with other countries and also how it has evolved over time. With a focus on the costs and benefits for Canadians, it then examines various rationales for recruitment, including revenue generation, improved knowledge production at Canadian post-secondary institutions, and complementarities with the system of skills-based immigrant selection. The broad conclusion of the paper is that foreign student recruitment can provide net benefits to Canada if pursued within an appropriate incentive structure.