Challenges of India’s No-Employment Policy for International Students: A Structural Equation Modelling Approach

Abstract

Aims: International students face financial challenges due to tuition fees, living expenses, and limited financial aid. While many countries permit part-time employment, India prohibits it. This study examines how India's no-employment policy affects students' financial stress, perceived benefits of part-time work, and career development. Design/Methodology/Approach: A cross-sectional survey design was utilized to collect data from a sample of 150 foreign students studying in different states of India. Structural Equation Modelling (SEM) was employed using SmartPLS Version 4.1.0.9 to analyze the hypothesized relationships between the constructs. Research Findings: The study finds that higher financial stress is associated with negative perceptions of the employment restriction and a stronger belief in the benefits of part-time work. Financial stress did not directly impact perceived career development but had a significant indirect effect, mediated through negative policy perceptions and perceived benefits of part-time work. The perceived benefits of part-time work played a crucial role, directly influencing both negative policy perceptions and career development concerns. Theoretical Contribution/Originality: Although India is hosting a large number of international students, the restriction on employment for international students poses financial stress and limits their career development opportunities. The study suggests that policymakers should reconsider employment restrictions for foreign students, as allowing part-time work could provide crucial financial support while enhancing career development opportunities.