The authors develop a conceptual framework explaining monetary returns to international student mobility (ISM). Based on data from two German graduate panel surveys, they test this framework using growth curve models and Oaxaca-Blinder decompositions. The results indicate that ISM-experienced graduates enjoy a steeper wage growth after graduation and that they receive higher medium-term wages. This is partly attributable to their favourable self-selection. Under control of selection effects and competency gains from ISM, two mechanisms so far disregarded in the literature explain monetary returns to ISM: the steeper wage growth results from the higher likelihood of ISM-experienced graduates to increase their wage through employer changes. Linked to this, their higher likelihood of working in large and multinational companies explains their medium-term wage advantage.