Matthias Parey , Fabian Waldinger, 27 March 2011

Is the ERASMUS scheme – where European students study for a year in a foreign country – just an excuse for a holiday or does it have some economic value? This column analyses how studying abroad affects labour-market mobility using the exposure to ERASMUS as an exogenous source of variation in studying abroad. It finds that studying abroad increases an individual's probability of working in a foreign country by about 15 percentage points.

CEPR Policy Research