IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/150.html
   My bibliography  Save this paper

Does it pay to study abroad? Evidence from Poland

Author

Listed:
  • Liwiński, Jacek

Abstract

Purpose: This paper tries to identify the impact of international student mobility on the first wages of tertiary education graduates in Poland. Design/methodology/approach: The author uses data from the nationwide tracer survey of Polish graduates (Graduate Tracer Study 2007) and regresses the hourly net wage rate in the first job after graduating from a higher education institution (HEI) on a rich set of individuals' characteristics. In order to reduce the bias due to selection to international student mobility the author includes a set of variables representing abilities and skills, characteristics of studies and international experience as control variables. The author addresses the possible selection to employment bias by using the Heckman correction with various exclusion restrictions. Findings: After controlling for observed heterogenity the author finds that Polish graduates who studied abroad for at least one month earn on average 18% more on their first job than those who studied in Poland only. However, the author also finds that this wage premium is partly explained by international economic migration after graduation. Studying abroad brings a wage premium only if it is followed by working abroad. Those who perform their first job in Poland do not obtain any wage premium from international student mobility. Originality/value: The main contribution of the paper is that it identifies international economic migration after graduation as another mechanism explaining why those, who studied abroad, earn more.

Suggested Citation

  • Liwiński, Jacek, 2017. "Does it pay to study abroad? Evidence from Poland," GLO Discussion Paper Series 150, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:150
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/171926/1/GLO-DP-0150.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. repec:spr:soinre:v:137:y:2018:i:3:d:10.1007_s11205-017-1641-1 is not listed on IDEAS
    2. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    3. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    4. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    5. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    6. Theodore P. Lianos & D. Asteriou & G.M. Agiomirgianakis, 2004. "Foreign university graduates in the Greek labour market: Employment, salaries and overeducation," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 151-164.
    7. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    8. Messer, Dolores & Wolter, Stefan C., 2005. "Are Student Exchange Programs Worth It?," IZA Discussion Papers 1656, Institute for the Study of Labor (IZA).
    9. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, July.
    10. Stiglitz, Joseph E, 1975. "The Theory of "Screening," Education, and the Distribution of Income," American Economic Review, American Economic Association, vol. 65(3), pages 283-300, June.
    11. Poot, Jacques & Roskruge, Matthew, 2013. "Internationalisation of Education and Returns in the Labour Market," IZA Discussion Papers 7696, Institute for the Study of Labor (IZA).
    12. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    13. Emilia Bedyk & Jacek Liwiński, 2016. "The wage premium from parents’ investments in the education of their children in Poland," Working Papers 2016-14, Faculty of Economic Sciences, University of Warsaw.
    14. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    15. Floro Ernesto Caroleo & Francesco Pastore, 2018. "Overeducation at a Glance. Determinants and Wage Effects of the Educational Mismatch Based on AlmaLaurea Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 999-1032, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    international student mobility; wages; wage premium; Heckman correction;

    JEL classification:

    • I29 - Health, Education, and Welfare - - Education - - - Other
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:150. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - Leibniz Information Centre for Economics). General contact details of provider: http://edirc.repec.org/data/glaboea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.