The case of state funded higher education scholarship plans and interstate brain drain

This paper studies the impact of state funded higher education scholarship plans on interstate migration patterns of college educated individuals between 1980 and 2009. We find that these plans increase the in-state enrollment rate, but have no positive impact on the subsequent number of graduates. While aggregate migration trends remain unaffected as a result of these plans, we find the out-migration rate of young college educated individuals decreases 3 to 5 years after the adoption of a plan, but this effect is countered by an increase in the out-migration of older college educated adults in later years.

► We explore the impact of state sponsored higher education scholarship plans (SSSP). ► SSSPs increase college enrollment, but not subsequent numbers of graduates. ► Out-migration of young college graduates decreases 5 years after adoption of SSSP.