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The Erasmus effect on earnings: a panel analysis from Siena

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  • Luca Favero
  • Andreina Fucci

Abstract

This article examines the impact on salaries of Erasmus participation for graduates from the University of Siena. Specifically, it investigates whether mobile alumni experience an increase in terms of net monthly salaries. We use AlmaLaurea panel data for 2010 graduates from the University of Siena who were interviewed again in 2011, 2013 and 2015, making this study one of the very first to use panel data to track the Erasmus impact. Our results show the existence of a wage premium of around 7-9%. We employ a variety of techniques in order to address the endogeneity of the decision to participate in the programme including random effect estimation, instrumental variable estimation and propensity score matching.

Suggested Citation

  • Luca Favero & Andreina Fucci, 2017. "The Erasmus effect on earnings: a panel analysis from Siena," Department of Economics University of Siena 762, Department of Economics, University of Siena.
    • Handle: RePEc:usi:wpaper:762
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    References listed on IDEAS

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    1. Giorgio Di Pietro, 2015. "Do Study Abroad Programs Enhance the Employability of Graduates?," Education Finance and Policy, MIT Press, vol. 10(2), pages 223-243, March.
    2. Di Pietro, Giorgio, 2012. "Does studying abroad cause international labor mobility? Evidence from Italy," Economics Letters, Elsevier, vol. 117(3), pages 632-635.
    3. Floro Ernesto Caroleo & Francesco Pastore, 2012. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Discussion Papers 18_2012, CRISEI, University of Naples "Parthenope", Italy.
    4. Matthias Parey & Fabian Waldinger, 2011. "Studying Abroad and the Effect on International Labour Market Mobility: Evidence from the Introduction of ERASMUS," Economic Journal, Royal Economic Society, vol. 121(551), pages 194-222, March.
    5. Koop, Gary M & Tobias, Justin, 2004. "Learning About Heterogeneity in Returns to Schooling," Staff General Research Papers Archive 12008, Iowa State University, Department of Economics.
    6. Messer, Dolores & Wolter, Stefan C., 2005. "Are Student Exchange Programs Worth It?," IZA Discussion Papers 1656, Institute of Labor Economics (IZA).
    7. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    8. Giorgio Di Pietro, 2019. "University study abroad and graduates’ employability," IZA World of Labor, Institute of Labor Economics (IZA), pages 109-109, May.
    9. repec:iza:izawol:journl:y:2014:p:109 is not listed on IDEAS
    10. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
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    Cited by:

    1. Sieds, 2019. "Complete Volume LXXIII n. 2 2019," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 73(2), pages 1-148, April-Jun.
    2. Granato, Silvia & Havari, Enkelejda & Mazzarella, Gianluca & Schnepf, Sylke V., 2024. "Study abroad programmes and student outcomes: Evidence from Erasmus," Economics of Education Review, Elsevier, vol. 99(C).
    3. Giuseppe Croce & Emanuela Ghignoni, 2024. "The Multifaceted Impact of Erasmus Programme on the School-to-Work Transition: A Matching Sensitivity Analysis," Research in Higher Education, Springer;Association for Institutional Research, vol. 65(4), pages 732-754, June.
    4. Laura Urgelles, 2021. "Program Specific Effects of a Semester Abroad on the Likelihood of Pursuing a PhD," Higher Education Studies, Canadian Center of Science and Education, vol. 11(2), pages 155-155, June.
    5. Valentina Ferri, 2019. "The impact of international students mobility on wages," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 73(2), pages 135-146, April-Jun.
    6. Di Pietro Giorgio & European Commission & IZA, 2022. "Studying abroad and earnings: A meta‐analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1096-1129, September.

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    More about this item

    Keywords

    Erasmus program; graduates; wage premium; panel data; Almlaurea; pscore; instrumental variables;
    All these keywords.

    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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