This paper explores the factors that shape the location choices of formerly mobile graduates (FMGs) initially resident in Sardinia, Italy, a less developed European region. Combining qualitative and quantitative techniques, the paper examines the reasons why some individuals decide to return after their studies, the factors that shape their decisions and how these choices unfolded in space and time. It counters the literature, which suggests that migration is a one-off linear process driven only by wealth-maximising behaviour, positing rather that access to opportunities in open meritocratic job markets and circular migration trajectories are far more salient to FMGs. This suggests that policy makers should concentrate on promoting labour market opportunities and invest in social networks that will aid brain circulation. JEL Classification

Abstract. This paper looks at the geographical mobility of graduate students and their skill matching in the labour market. The paper assesses the impact of a learning mobility grant scheme funded by the European Social Fund in Sardinia (ex-Objective 1 region in the Italian Mezzogiorno). The scheme aims to foster regional human capital and increase the employability of local graduates by covering the cost of post-graduate studies in other regions or countries. The econometric analysis is based on a unique dataset that combines administrative data on beneficiaries with information from a dedicated survey. The results suggest that learning mobility grants can reinforce skill matching only if the problem of self-selection of the beneficiaries is properly addressed. JEL Classification: J24, J61, R23, R58