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Assessing the returns to studying abroad

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  • Hessel Oosterbeek

    ()

  • Dinand Webbink

    ()

Abstract

The market for higher education increasingly becomes an international market. Nowadays, the number of students studying abroad is substantial and increasing. Many governments stimulate students to study abroad by offering a wide range of grants. However, little is known on the returns to studying abroad. This paper explores the feasibility of a new approach for finding credible evidence on the returns to studying abroad. We use a sample of graduates who applied for a specific grant for studying abroad and compare the outcomes of graduates who received the grant with the outcomes of graduates who did not receive the grant. The ranking of the applicants by the selection committee has been used to create credible control groups. We find that the grant has increased the probability of studying abroad with 23 to 42%-points and the duration of the study with 7 to 9 months. An extension of the study with 7 to 9 months increases the probability of living abroad with 30 to 39%-points. Studying abroad is associated with higher wages. However, it is not clear whether these higher wages are caused by studying abroad.

Suggested Citation

  • Hessel Oosterbeek & Dinand Webbink, 2006. "Assessing the returns to studying abroad," CPB Discussion Paper 64, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:discus:64
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    Cited by:

    1. Jan Bergerhoff & Lex Borghans & Philipp Seegers & Tom Veen, 2013. "International education and economic growth," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-13, December.
    2. Laura Thissen & Sjef Ederveen, 2006. "Higher education; time for coordination on a European level?," CPB Discussion Paper 68, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Dustmann, Christian & Glitz, Albrecht, 2011. "Migration and Education," Handbook of the Economics of Education, Elsevier.
    4. Gega Todua, 2017. "Financing Education Abroad: A Developing Country Perspective," CERGE-EI Working Papers wp608, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. repec:oup:cesifo:v:54:y:2008:i:2:p:248-276. is not listed on IDEAS
    6. Frederick van der Ploeg & Reinhilde Veugelers, 2007. "Higher Education Reform and the Renewed Lisbon Strategy: Role of Member States and the European Commission," Economics Working Papers ECO2007/33, European University Institute.
    7. Gabrielle Demange, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo, pages 248-276.

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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