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

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Author Info
Parey, Matthias () (University College London)
Waldinger, Fabian () (CEP, London School of Economics)

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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.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3430.

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Length: 41 pages
Date of creation: Apr 2008
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Handle: RePEc:iza:izadps:dp3430

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Related research
Keywords: international mobility; migration; student exchange; education;

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Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
I2 - Health, Education, and Welfare - - Education
F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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.
  2. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March. [Downloadable!] (restricted)
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  3. 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. [Downloadable!]
  4. 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.
  5. 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. [Downloadable!] (restricted)
  6. Axel Dreher & Panu Poutvaara, 2005. "Student Flows and Migration: An Empirical Analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  1. de Grip, Andries & Fouarge, Didier & Sauermann, Jan, 2009. "What Affects International Migration of European Science and Engineering Graduates?," IZA Discussion Papers 4268, Institute for the Study of Labor (IZA). [Downloadable!]
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