Does studying abroad induce a brain drain?

This paper investigates whether studying abroad increases the propensity to live abroad later on. We use an instrumental variable approach based on cut-offs in the ranking of Dutch higher education graduates who applied for a scholarship programme for outstanding students. Applicants ranked above the cut-off received a scholarship to study abroad. Applicants ranked below the cut-off were denied a scholarship. Assignment of a scholarship increases the probability to study abroad and the number of months spent studying abroad. Studying abroad and the number of months spent studying abroad increase the probability of currently living abroad.