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Studying Abroad and the Effect on International Labor Market Mobility: Evidence from the Introduction of ERASMUS

Parey, Matthias and Waldinger, Fabian Studying Abroad and the Effect on International Labor Market Mobility: Evidence from the Introduction of ERASMUS. [UNSPECIFIED]

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Abstract

We investigate the effect of studying abroad on international labor market mobility later in life for university graduates. As a source of identifying variation, we exploit the introduction and expansion of the European ERASMUS student exchange program, which significantly increases a student’s probability of studying abroad. Using an Instrument Variable approach we control for unobserved heterogeneity between individuals who studied abroad and those who did not. Our results indicate that student exchange mobility is an important determinant of later international labor market mobility: We find that studying abroad increases an individual’s probability of working in a foreign country by about 15 to 20 percentage points, suggesting that study abroad spells are an important channel to later migration. We investigate heterogeneity in returns and find that studying abroad has a stronger effect for credit constrained students. Furthermore, we suggest mechanisms through which the effect of studying abroad may operate. Our results are robust to a number of specification checks.

Item Type: UNSPECIFIED
Uncontrolled Keywords: J61, I2, F22, student exchange, migration, international mobility, education
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 16 Jul 2012 21:54
Last Modified: 17 Aug 2017 18:10
URI: http://repository.essex.ac.uk/id/eprint/2922

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