All target groups believed that TNE graduates are better equipped than locally educated graduates across a varied set of specific skills-such as problem solving, critical thinking, and international outlook. Thus, while TNE graduates are perceived as relatively skilled, the research suggests that TNE may be only "moderately" addressing skills gaps in the local labor market. Specialized TNE courses covering niche topics were felt to have a positive impact on addressing local skills gaps, but overall, many TNE providers are offering programs already available locally. Outlook for TNERespondents were generally optimistic about the outlook for TNE and indicated that both the number of new programs and the capacity of existing programs will continue to grow over the medium term. In terms of helping to build the local knowledge economy and producing collaborative research output, TNE looks well placed to play an increasing role in the host country. Economic considerations, such as the capacity of TNE to attracting foreign-direct investment and improve local infrastructure, appear less pronounced and will largely depend on host country government policy and country specific circumstances.The results paint an overall positive picture of the impact of TNE in host countries, especially in terms of TNE providing increased access for local students to higher education. But, there is very little concrete evidence to back up these opinions, as few TNE receiving countries have the capacity or will to gather enrollment data on all TNE operations in their country. An important challenge is the collection of data by host countries on the number and type of TNE operations in their country and the aggregate enrollment of local students, expatriate students living in the country, and international students enrolled in all TNE operations. E urope seems to experience a significant mismatch between the skills employers require from graduates, and the skills students acquire in higher education institutions (HEIs). There are 5.7 million unemployed young people in Europe, including many higher education graduates, at the same time as one third of employers cannot find employees with the right skills on the labor market. An analysis of the obvious mismatch between what employers demand and what young adults in general, and higher education graduates in particular, supply, may effectively inform policymakers in labor market and education policy areas. This was one of the reasons for the European Commission to initiate an analysis of the Erasmus program, with a special emphasis on employability. Mobility and the Labor MarketFrom 1987 until the end of 2012-2013, over 3 million students from more than 4,000 higher education institutions participated in Erasmus mobility. Erasmus is the largest mobility program in the world, financed by the European Commission. It is especially designed to promote the mobility of students in higher education. Therefore, an assessment of the contribution of this program to employability might shed some light on ...