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Evaluating the Impact of Educational Expansion on the Occupational Status of Youth

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  • Francis Vella
  • Tom Karmel

Abstract

This paper exploits the remarkable increase in the average educational attainment of Australian youth during the 1980's to evaluate the role of education in labour market performance. Rather than focus on the impact of schooling on wages, however, we examine changes in the occupational distribution of recent labour market entrants. The evidence indicates that the educational expansion appears to move all individuals up the educational ladder without altering their relative position. The results indicate that while the second cohort obtained substantially more education than the first cohort the occupational distribution of the two cohorts were almost identical. Furthermore, there was no evidence that the increased education counterbalanced changes in the structure of labour demand or manifested itself in higher wages.

Suggested Citation

  • Francis Vella & Tom Karmel, 1999. "Evaluating the Impact of Educational Expansion on the Occupational Status of Youth," Australian Economic Papers, Wiley Blackwell, vol. 38(3), pages 310-327, September.
    • Handle: RePEc:bla:ausecp:v:38:y:1999:i:3:p:310-327
    DOI: 10.1111/1467-8454.00059
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    Cited by:

    1. Nicolas Hérault & Rezida Zakirova, 2011. "Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects," Melbourne Institute Working Paper Series wp2011n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Rummery, Sarah & Vella, Francis & Verbeek, Marno, 1999. "Estimating the returns to education for Australian youth via rank-order instrumental variables," Labour Economics, Elsevier, vol. 6(4), pages 491-507, November.
    3. Nicolas H�rault & Rezida Zakirova, 2015. "Returns to education: accounting for enrolment and completion effects," Education Economics, Taylor & Francis Journals, vol. 23(1), pages 84-100, February.

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