Erasmus program and labor market outcomes: Evidence from a fuzzy regression discontinuity design

We study the impact that participation in the Erasmus program produces on labor market outcomes. By implementing a Fuzzy RDD, we show that participating in the international mobility program positively affects the probability of being employed three years after graduation, and reduces the time spent to find a job. These results are mainly driven by male and STEM graduates. We also show that Erasmus graduates have a higher average monthly income once they enter the job market. We investigate potential mechanisms underlying our results and find that studying abroad improves both the proficiency in English and the graduates' academic performance, and increases the willingness to move to find a job.