Studying Abroad and the Effect on International Labour Market Mobility: Evidence from the Introduction of Erasmus

29 Pages Posted: 16 Feb 2011

See all articles by Matthias Parey

Matthias Parey

University College London

Fabian Waldinger

University of Warwick - Department of Economics

Abstract

We investigate the effect of studying abroad on international labour market mobility later in life for university graduates. We exploit the introduction and expansion of the European ERASMUS student exchange programme as an instrument for studying abroad. We find that studying abroad increases an individual's probability of working in a foreign country by about 15 percentage points. We investigate heterogeneity in returns according to parental education and the student's financial situation. Furthermore, we suggest mechanisms through which the effect of studying abroad may operate.

Suggested Citation

Parey, Matthias and Waldinger, Fabian, Studying Abroad and the Effect on International Labour Market Mobility: Evidence from the Introduction of Erasmus. The Economic Journal, Vol. 121, No. 551, pp. 194-222, 2010. Available at SSRN: https://ssrn.com/abstract=1762424 or http://dx.doi.org/10.1111/j.1468-0297.2010.02369.x

Matthias Parey (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Fabian Waldinger

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

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