Brain gain versus brain drain: the effects of universities’ mobile students on territorial inequalities

Abstract

This study examines the relationship between university student mobility and local economic dynamics. Universities shape societies and economies as hubs of knowledge creation and innovation. While recent research highlights the significant impact of university students on local development, there is a gap in understanding the distinct effects of mobile versus resident students. Using data from 90 NUTS-3 provinces in Italy (2013–19), we investigate spatial inequalities generated by students’ mobility. Employing a fixed effects growth model, we find that incoming students boost economic growth in the Centre–North regions (brain gain), while southern provinces suffer reduced growth due to the brain drain.