Does Going Abroad Boost Your Income and Help Your Career? The Value of International Experience

by Irina Tomescu-Dubrow, Associate Professor, Institute of Philosophy and Sociology, Polish Academy of Sciences

Does going abroad, even for a little while, give you an edge in the job market?

As a small world gets smaller, employers across the US and Europe are looking for that “international experience” element in the resumes of job applicants. Corporations are sending their employees outside headquarters to do business in established and emerging economies. Universities push for international research and training collaborations, and academia and the private sector increasingly seek out personnel who can perform well in multi-national and multi-cultural environments.

Working or living abroad gives people skills and knowledge that businesses can use as they look for new markets and opportunities across the world. International experience seems like a good investment, but to date outside of the USA, empirical studies on its relationship to income and upward mobility are few.

In my article, “International Experience and Labour Market Success: Analysing Panel Data from Poland,” I used the longest running panel survey in Poland (POLPAN 1988 – 2013) to discover the impact of having spent at least two months in a foreign country (my definition of “international experience”) on two major life outcomes.

The first thing I looked for was relative income gains. Above and beyond gender, age, and education, I wanted to know whether people who went abroad earned more than those who did not. The answer is a strong yes: People who went abroad, even for as little as two months, have a higher income than those who did not go abroad, other things equal.

Next, I investigated the odds of becoming an employer or entrepreneur above and beyond the effects of age, gender, and education. Again, the answer is a strong yes: Having international experience boosts the odds of becoming an employer or entrepreneur.

As with a recent study in the US by economist Susan Pozo, I find that those with international experience have higher income than those without this experience. I also find that international experience leads to upward mobility, in the form of becoming an entrepreneur.

Since 1989, millions of East Europeans have traveled abroad seeking new skills, insights, and economic opportunities. Many of them come back. While the tales of making one’s fortune abroad fill popular culture and the media, there are surprisingly few empirical studies on whether and how being in another country impacts one’s income and career. Part of the reason is that there too few long-term panel datasets that document career paths and include episodes of being abroad. The case of Poland, via its unique panel data called POLPAN, suggests that international experience significantly matters for East Europeans as they navigate the labour market of their home country.

This article is based on the paper, International Experience and Labour Market Success: Analysing Panel Data from Poland, in the Polish Sociological Review.

Irina Tomescu-Dubrow

 

Irina Tomescu-Dubrow is an Associate Professor at the Institute of Philosophy and Sociology, Polish Academy of Sciences and conducts research on inequality, attainment, and mobility in historical and cross-national perspectives.

In America, 20 Percent Reach “Affluence” at Least Once in Their Life

It depends on what you call affluence.  If you make 250,000 USD a year, this study considers you affluent:

HOPE YEN, THE ASSOCIATED PRESS

WASHINGTON (AP) – Fully 20 percent of U.S. adults become rich for parts of their lives, wielding extensive influence over America’s economy and politics, according to new survey data.  These “new rich,” made up largely of older professionals, working married couples and more educated singles, are becoming politically influential, and economists say their capacity to spend is key to the U.S. economic recovery. But their rise is also a sign of the nation’s continuing economic polarization.

They extend well beyond the wealthiest 1 percent, a traditional group of super-rich millionaires and billionaires with long-held family assets. The new rich have household income of $250,000 or more at some point during their working lives, putting them – if sometimes temporarily – in the top 2 percent of earners.

The new survey data on the affluent are being published in an upcoming book, and an analysis by The AP-NORC Center for Public Affairs Research provided additional information on the views of the group.

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America Has Lower Economic Mobility Than Other Countries of the West

According to a recent study published by Sage:

The American Dream is supposed to mean that through hard work and perseverance, even the poorest people can make it to middle class or above. But it’s actually harder to move up in America than it is in most other advanced nations.  It’s easier to rise above the class you’re born into in countries like Japan, Germany, Australia, and the Scandinavian nations, according to research from University of Ottawa economist and current Russell Sage Foundation Fellow Miles Corak.

Among the major developed countries, only in Italy and the United Kingdom is there less economic mobility, according to Corak.  The research measures “intergenerational earnings elasticity” — a type of economic mobility that measures the correlation between what your parents make and what you make one generation later — in a number of different countries around the world.

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Location, Location: Geographic Factors of Social Mobility

From the NYTimes:

“A study finds the odds of rising to another income level are notably low in certain cities, like Atlanta and Charlotte, and much higher in New York and Boston.

…geography appears to play a major role in making Atlanta one of the metropolitan areas where it is most difficult for lower-income households to rise into the middle class and beyond, according to a new study that other researchers are calling the most detailed portrait yet of income mobility in the United States.

The study — based on millions of anonymous earnings records and being released this week by a team of top academic economists — is the first with enough data to compare upward mobility across metropolitan areas. These comparisons provide some of the most powerful evidence so far about the factors that seem to drive people’s chances of rising beyond the station of their birth, including education, family structure and the economic layout of metropolitan areas.

Climbing the income ladder occurs less often in the Southeast and industrial Midwest, the data shows, with the odds notably low in Atlanta, Charlotte, Memphis, Raleigh, Indianapolis, Cincinnati and Columbus.

By contrast, some of the highest rates occur in the Northeast, Great Plains and West, including in New York, Boston, Salt Lake City, Pittsburgh, Seattle and large swaths of California and Minnesota.”

Read the entire article here.

Pew Research on the 2012 U.S. Elections

For excellent analysis of all the most critical issues to the 2012 U.S. elections in America, see “Campaign 2012” of the Pew Research Center.

Highlights:

  • Are Americans better off today?  Well, they’re not worse off.  And partisanship has much to do with their view:  “Republicans consistently rate their personal finances more positively than do Democrats or independents, largely reflecting Republicans’ higher average income levels. But the gap has narrowed since the start of the recession in December 2007, as Republicans have come to view their financial situations less positively.”
  • In a word:  Obama  has gone from “inexperienced” and “change” in 2008 to “good/good man” and “trying/tried/tries” in 2012.  Romney?  “honest,” “businessman,” “rich.”
  • Tax hikes on those making $250,000 a year?  44% say it would help economy, 22% say hurt, and 24% say no difference.

There’s much more on the website, including the latest voter polls.