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Studying abroad and the effect on international labor market mobility: evidence from the introduction of Erasmus

  • Matthias Parey
  • Fabian Waldinger

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 London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 19383.

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Length: 44 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:ehl:lserod:19383
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  1. Beine, Michel & Docquier, Frederic & Rapoport, Hillel, 2001. "Brain drain and economic growth: theory and evidence," Journal of Development Economics, Elsevier, vol. 64(1), pages 275-289, February.
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  4. 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.
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  8. 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.
  9. Silke Uebelmesser, 2006. "To Go or Not to Go: Emigration from Germany," German Economic Review, Verein für Socialpolitik, vol. 7, pages 211-231, 05.
  10. 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.
  11. Axel Dreher & Panu Poutvaara, 2005. "Student Flows and Migration: An Empirical Analysis�," TWI Research Paper Series 8, Thurgauer Wirtschaftsinstitut, Universit�t Konstanz.
  12. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  13. 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.
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