Study Globally, Earn More Locally

• The US and Switzerland offer the most valuable graduate degrees internationally, while foreign degrees are most valued in Asian countries.

• Foreign MBAs are the most valued out of all international graduate degrees: Graduates from international MBA programs earn nearly 20% more than those from domestic programs.

• Graduates from foreign degree programs are more likely to report having skills in foreign languages, management, and strategy: English is the most overrepresented skill reported by employees with foreign graduate degrees compared to those with domestic degrees.

Decisions regarding education can shape a person’s future career opportunities, and choosing the right education can open pathways to professional success. Last week, we examined the value of an American graduate degree for international students interested in pursuing careers in the US. This week, we explore the flip side of the coin: For students considering whether to pursue a graduate degree abroad, which foreign degrees are most valuable, and how might they lead to opportunities at home?

Many people consider pursuing a graduate degree abroad to access high-quality education, explore diverse cultures, and enhance their career prospects. Studying in a foreign country offers students the opportunity not only to build an international network but also to acquire skills that are valued in an increasingly globalized job market.

To analyze the value of pursuing a foreign degree, we create a sample of individuals with graduate degrees currently employed in their home country, which we define as the country where they received their earliest observed non-graduate education. We split this group into individuals who received graduate degrees from their home country and those who received their degrees from an institution outside their home country.

First, which countries have the most-valued graduate degrees? We measure the value of a graduate degree by the salary difference of employees holding a specific country’s degree relative to a domestic degree. We find that graduate degrees from the US and Switzerland are most valued, with these degree holders earning nearly 20% more than individuals with domestic graduate degrees. Other English-speaking countries, such as the UK, Australia, and Canada, are also included in the top ten.

We also look more closely at the types of graduate degrees that are most valued. While the share of foreign degree holders is relatively consistent across master’s, MBA, and doctorate programs—ranging from 9% to 11%—we find that foreign MBAs come with the highest salary premiums. Employees receiving MBAs from another country earn nearly 20% more than those who received an MBA from their home country, a premium that is around twice as high as those for foreign master’s and doctorate degrees. Attending an international MBA program may be particularly valuable because of its emphasis on creating connections and cross-cultural communication, allowing students to build global professional networks and gain exposure to diverse perspectives.

The value of a foreign graduate degree may reflect the skills these employees bring to the table. After controlling for occupation, we find that alumni of foreign graduate programs are more likely to report having language skills such as English and Spanish, as well as business-relevant management and strategy skills, than alumni of domestic graduate programs. Foreign graduate programs are likely to be offered in English or other widely spoken languages, which can be valuable in international business, and employees with fluency in multiple languages may be more competitive in roles that require cross-cultural communication.

Some of the salary differences can also be explained by the types of firms these employees are likely to work at: Employees with foreign graduate degrees are 40% more likely to work at foreign-headquartered firms than those with domestic degrees. In many cases, these international corporations may be able to offer higher pay than domestic firms.

Finally, in which countries are foreign degrees most valued? We find that Asian countries seem to value these degrees the most. After controlling for occupation, employees with foreign graduate degrees in Bangladesh, Pakistan, and India earn up to 14% more than those with domestic degrees. This could be due to the perceived prestige and quality of education provided by foreign degrees, as well as the cross-cultural experience and international networking opportunities these degrees offer.

In conclusion, foreign graduate degrees are valued globally because they offer students a chance to broaden their perspectives and open pathways to career opportunities. Beyond signaling strong academic foundations, these degrees equip graduates with essential international experience, adaptability, and multilingual communication skills, making them highly competitive in today’s interconnected and globalized economy. However, not all foreign degrees are created equal, and students interested in pursuing education abroad may also benefit from considering which specific degrees and countries would be most beneficial for their future careers.