Various studies have shown that studying abroad increases your chances of getting a high starting salary upon being hired. Back home, employers will value the language, intercultural and problem-solving skills you learned abroad. If you choose to remain in the foreign country where you studied, your experience as a student will likely also help you transition into the country's work culture.
Graduates who studied abroad typically earn higher starting salaries
Some relevant studies are the one conducted by Statistics Canada in 2022, the one done by the advisory center GSG Education in Colombia the same year, another by Erasmus and Cereq in France in 2016, and an even older one by IES Abroad carried out in the US back in 2012. IES Abroad is a non-profit organization that provides study abroad programs for American university students, while Cereq is a public research institution that studies the relationship between training and employment in France.
These studies found that fresh graduates with study-abroad experience land a job more quickly and are offered a higher starting salary than others. They are also more likely to find a job directly related to their degree and are likely to keep earning more down the line.
In the US, the IES Abroad study found that even during the 2008-2011 recession, college graduates who'd studied abroad were offered a starting salary that was about $7,000 higher than others. While the general average starting salary was $28,000, those who'd studied abroad had around $35,000. This was possible even when they had liberal arts degrees that tend to be associated with lower salaries than STEM or finance degrees. Furthermore, 65% of these graduates who'd studied abroad said they had managed to bag a first job that's “closely” or “somewhat” related to their major.
In France in 2016, the study jointly conducted by Erasmus and Cereq found that fresh graduates who'd studied abroad earned an average of €240 more than others. They earned €1480 instead of €1200 per month. In addition, they landed their first job more quickly – after a search of around 3 instead of 4.5 months. They also found that the students who were most likely to study abroad were business school ones. In a highly globalized economy, businesses often have branches in various countries, which makes studying abroad for business students particularly useful.
In Colombia in 2022, the advisory center GSG Education found that a fresh graduate who'd studied abroad could earn thrice as much as one who studied only at a Colombian University. For example, a Colombian who graduated from UC Berkeley in the US makes an average of $83,000 per year once he/she returns home, and one who studied at the University of Manchester in the UK earns an average of $35,500. In contrast, one who attended a private university in Bogota earns only around $15,000 when starting out.
Those who studied abroad had to invest more money in their education, but their returns are also higher, so they manage to “earn back” their investment in little time. For instance, even if a Colombian UC Berkeley graduate invested around $45,000 per year in his/her education, his/her high starting salary back in Colombia allows him/her to recover that cost in 2 years. Meanwhile, someone who studied locally would take 3-4 years to recover much lower educational expenses.
The 2022 study of Statistics Canada focuses on how much international students earn in Canada itself, not back in their home countries. Ten years after first moving to Canada, they earn 9-12% more than other expats who came directly as workers rather than as international students first – even when they technically have the same level of qualifications. In 2019, these former international students made up 38% of all economic migrants in Canada, and this percentage keeps increasing.
Employers value the adaptability and intercultural skills learned abroad
Why does study-abroad experience translate into better job opportunities and higher earnings? It is because of the precious experience and skills that studying abroad gives workers. Employers everywhere really value the language, intercultural and problem-solving skills that studying abroad equips graduates with. They are clearly willing to pay more for these extra skills.
It's very difficult to achieve near-native fluency in a foreign language without cultural immersion in a country where it's spoken. There are nuances, aspects of body language, differences in the register, cultural references and accents that are impossible to pick up only in a textbook or classroom. Excellent foreign language skills are highly valued in the labor market of multilingual countries like Canada and in highly international fields like business, consulting, energy, tourism/hospitality, and technology.
The University of California Merced compiled a list of skills and values employers say they like in workers who have studied abroad. “Language skills” features on the list, but it's also shouldered by others like “a courageous spirit,” “a willingness to learn,” “communication and collaboration,” “global mindedness,” “social skills,” and “adaptability and flexibility.” Indeed, studying abroad can be a challenge. International students have to show a lot of resilience to overcome homesickness and cultural shock. They need to be brave and self-reliant to make friends from other cultures and build networks abroad. These are traits that are transferable to their professional lives later on – and employers are aware of it.
Indeed, Statistics Canada precisely attributed its findings about wage disparity over the long run to that. Expats in Canada who had also studied for 1-4 years there have a better mastery of English and/or French than those who arrive on a work visa. They likely worked part-time or as volunteers when they were students, so they were already used to the social norms of a Canadian workplace by the time they got their first full-time job. Ease of adaptation helps them progress faster up the career ladder.
Companies in countries of the developing world also greatly value qualifications from more economically developed countries. It's often assumed that the knowledge they bring from these wealthier countries can help their own country's economic development. This might be one of the reasons why those who studied abroad are paid more in Colombia.
