Does the effect of studying abroad on labour income vary by graduates’ social origin? Evidence from Germany

Abstract

Studying abroad can positively influence students' personality development, transversal skills, and labour market outcomes. At the same time, students from a high social origin are more likely to study abroad than students from a low social origin. Against this background, recent research has suggested that international student mobility (ISM) may foster the reproduction of social inequality. However, this assumption has hardly been tested empirically. Drawing on social stratification theory, we first demonstrate that a scenario in which ISM increases social inequality (cumulative advantage) is as plausible as a scenario in which it decreases social inequality (compensatory levelling). We then address the sketched research gap by testing whether the effect of studying abroad on graduates' labour income varies across social groups in the German labour market. Using data from the 2005 DZHW Graduate Panel, we perform a propensity score matching and calculate random effects growth curve models to examine the role of ISM for the development of social inequality during the first 10 years of graduates' careers. In line with the scenario of cumulative advantage, our results suggest that graduates from a high social origin benefit more from ISM than graduates from a low social origin. Considering that students from a high social origin are also more likely to study abroad in the first place, we conclude that ISM tends to foster the reproduction of social inequality in the German labour market.

The intergenerational social mobility of internationally mobile students: The status attainment of returnees from abroad compared with non‐returnees

“…Similarly, in another recent example, Waibel, Petzold, and Rüger (2018), focusing on the occupational status benefits of German higher education graduates who studied abroad, find that mobile graduates benefit in what they call ‘occupationally unspecific fields of study’ (p. 46). In the same context, Netz and Grüttner (2020) find that at least 2 months of study abroad benefit graduates from a high social origin more than those from a low social origin. In the Polish context, Liwiński (2019) finds that short study abroad stays of at least a month are beneficial only if they are followed by work abroad before returning to Poland.…”

International mobility of students in Italy and the UK: does it pay off and for whom?

“…Evidence on this topic is rather limited (Bilecen & Van Mol 2017), and the results of studies testing whether the effect of mobility varies across socio-economic groups are mixed. Di Pietro (2015) and Sorrenti (2017), using Italian data, conclude that mobility is more beneficial for disadvantaged students in terms of employment probability, whereas Netz and Grüttner (2020) find that German graduates with highly educated parents experience higher income returns than peers whose parents have a lower educational level.…”

Why do women more often intend to study abroad than men?

“…Finally, the nascent debate on heterogeneous labour market effects of studying abroad (e.g., Netz & Grüttner, 2020) should be extended to gender: Does studying abroad influence female and male careers in a similar manner? If not, what explains gender-specific returns to studying abroad?…”

“…In today's globalised world, various gains are attributed to studying abroad. 1 It can positively influence students' personality development (Zimmermann et al, 2020), intercultural competences (Cubillos & Ilvento, 2013;Roy et al, 2019;Sorrenti, 2017) and professional career (Jacob et al, 2019;Liwiński, 2019;Netz & Grüttner, 2020;Waibel et al, 2018).…”