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

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  • Matthias Parey
  • Fabian Waldinger

Abstract

We investigate the e¤ect of studying abroad on international labor market mobility later in life for German university graduates. As a source of identifying variation, we exploit the introduction and expansion of the 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 mportant channel to later outmigration. The results are robust to a number of specification checks.

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Paper provided by Centre for the Economics of Education, LSE in its series CEE Discussion Papers with number 0086.

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Date of creation: Aug 2007
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Handle: RePEc:cep:ceedps:0086

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  1. Axel Dreher & Panu Poutvaara, 2005. "Student Flows and Migration: An Empirical Analysis," CESifo Working Paper Series 1490, CESifo Group Munich.
  2. Hessel Oosterbeek & Dinand Webbink, 2011. "Does Studying Abroad Induce a Brain Drain?," Economica, London School of Economics and Political Science, vol. 78(310), pages 347-366, 04.
  3. Sascha O. Becker & Andrea Ichino & Giovanni Peri, 2003. "How Large is the "Brain Drain" from Italy?," CESifo Working Paper Series 839, CESifo Group Munich.
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  5. Kling, Jeffrey R, 2001. "Interpreting Instrumental Variables Estimates of the Returns to Schooling," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(3), pages 358-64, July.
  6. Silke Uebelmesser, 2005. "To go or not to go: Emigration from Germany," CESifo Working Paper Series 1626, CESifo Group Munich.
  7. Michel Beine & Frédéric Docquier & Hillel Rapoport, 2001. "Brain drain and economic growth: theory and evidence," ULB Institutional Repository 2013/10449, ULB -- Universite Libre de Bruxelles.
  8. repec:brs:ecchap:12 is not listed on IDEAS
  9. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
  10. W. A. V. Clark, 1985. "Human Migration," Book Chapters, in: Grant I. Thrall (ed.), Scientific Geography, pages 51 Regional Research Institute, West Virginia University.
  11. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-29, October.
  12. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
  13. Yolanda K. Kodrzycki, 2001. "Migration of recent college graduates: evidence from the National Longitudinal Survey of Youth," New England Economic Review, Federal Reserve Bank of Boston, pages 13-34.
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