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The effect of university graduates’ international mobility on labour outcomes in Spain

ABSTRACT The Erasmus programme represents one of the most popular policy measures of the European Union among its citizens. The aim of this paper is to explore the causal effect of this mobility action on labour market outcomes and skills’ development in Spain. In order to do so, this research exploits the Spanish University Students Employability Survey 2014 an employs and instrumental variables strategy, based on the supply of Erasmus scholarships by area of studies and region of residence, to address the potential endogeneity of the participation in the programme. On the one hand, the empirical results suggest that studying abroad has a positive effect on the probability of becoming an entrepreneur, working in a foreign country and the formation of Information Communication and Communication skills. On the other hand, they do not reveal any significant impact of participating in this programme on the likelihood of employment and several working conditions.