IDEAS home Printed from https://ideas.repec.org/a/iza/izawol/journl2018n165.html
   My bibliography  Save this article

Labor market consequences of the college boom around the world

Author

Listed:
  • Gustavo Yamada

    (Universidad del Pacífico, Peru)

  • Pablo Lavado

    (Universidad del Pacífico, Peru)

Abstract

As the number of secondary school graduates rises, many developing countries expand the supply of public and private universities or face pressure to do so. However, several factors point to the need for caution, including weak job markets, low-quality university programs, and job–education mismatches. More university graduates in this context could exacerbate unemployment, underemployment, and overeducation of professionals. Whether governments should regulate the quantity or quality of university programs, however, depends on the specific combination of factors in each country.

Suggested Citation

  • Gustavo Yamada & Pablo Lavado, 2018. "Labor market consequences of the college boom around the world," IZA World of Labor, Institute of Labor Economics (IZA), pages 165-165, December.
    • Handle: RePEc:iza:izawol:journl:2018:n:165
    as

    Download full text from publisher

    File URL: https://wol.iza.org/uploads/articles/165/pdfs/boom-in-university-graduates-and-risk-of-underemployment.pdf
    Download Restriction: no
    File URL: https://wol.iza.org/articles/boom-in-university-graduates-and-risk-of-underemployment
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    2. Katarina R. I. Keller, 2006. "Investment In Primary, Secondary, And Higher Education And The Effects On Economic Growth," Contemporary Economic Policy, Western Economic Association International, vol. 24(1), pages 18-34, January.
    3. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-122, April.
    4. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    5. Patrizia Ordine & Giuseppe Rose, 2009. "Overeducation and Instructional Quality: A Theoretical Model and Some Facts," Journal of Human Capital, University of Chicago Press, vol. 3(1), pages 73-105.
    6. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
    7. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 45(1), pages 39-82, March.
    8. Julia Liebeskind & Richard P. Rumelt, 1989. "Markets for Experience Goods with Performance Uncertainty," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 601-621, Winter.
    9. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 3, number 3, June.
    10. Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michael Landesmann & Isilda Mara, 2021. "Interrelationships between Human Capital, Migration and Labour Markets in the Western Balkans: An Econometric Investigation," wiiw Working Papers 196, The Vienna Institute for International Economic Studies, wiiw.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. García Ramos, Yboon & Flores-Bazán, Fabian & Nicolas Hadjisavvas, 2017. "About the sum of quasiconvex functions," Working Papers 17-07, Centro de Investigación, Universidad del Pacífico.
    2. Marta Pascual Sáez & Noelia González-Prieto & David Cantarero-Prieto, 2016. "Is Over-Education a Problem in Spain? Empirical Evidence Based on the EU-SILC," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(2), pages 617-632, March.
    3. Inmaculada Garc�a-Mainar & V�ctor M. Montuenga-G�mez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    4. Schwientek, Caroline, 2016. "Are immigrants overeducated in Germany? Determinants and wage effects of educational mismatch," FAU Discussion Papers in Economics 07/2016, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    5. Paula Herrera-Id�rraga & Enrique L�pez-Bazo & Elisabet Motell�n, 2015. "Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 51(12), pages 1683-1701, December.
    6. Floro Ernesto Caroleo & Francesco Pastore, 2018. "Overeducation at a Glance. Determinants and Wage Effects of the Educational Mismatch Based on AlmaLaurea Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 999-1032, June.
    7. Carmen Aina & Francesco Pastore, 2020. "Delayed Graduation and Overeducation in Italy: A Test of the Human Capital Model Versus the Screening Hypothesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(2), pages 533-553, November.
    8. Abbi Kedir & Andri Kyrizi & Francisco Martinez-Mora, 2012. "Signalling and Productivity Effects of Overeducation: Is It Really a Waste of Resources?," Discussion Papers in Economics 12/19, Division of Economics, School of Business, University of Leicester.
    9. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2020. "Over-Qualification and the Dimensions of Job Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 591-620, January.
    10. Benjamin Artz & David M. Welsch, 2021. "Overeducation and wages revisited: A two‐cohort comparison and random coefficients approach," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 909-936, January.
    11. Theresa Geißler & Laszlo Goerke, 2023. "Educational Mismatch and Labour Market Institutions: The Role of Gender," Working Papers 2023.14, International Network for Economic Research - INFER.
    12. Eleni Kalfa & Matloob Piracha, 2017. "Immigrants’ educational mismatch and the penalty of over-education," Education Economics, Taylor & Francis Journals, vol. 25(5), pages 462-481, September.
    13. Gregorio Gimenez & Luis Vargas-Montoya, 2021. "ICT Use and Successful Learning: The Role of the Stock of Human Capital," Mathematics, MDPI, vol. 9(14), pages 1-15, July.
    14. Meier, Volker & Schiopu, Ioana, 2015. "Optimal higher education enrollment and productivity externalities in a two-sector model," Journal of Public Economics, Elsevier, vol. 121(C), pages 1-13.
    15. Ahmed Lahsen, Amina & Piper, Alan T. & Thiele, Ida-Anna, 2020. "Kim Jiyoung, Born 1982, and the Labour Market: Overeducation, Gender, Income and Life Satisfaction. Panel evidence from Korea," MPRA Paper 100616, University Library of Munich, Germany.
    16. Alain Alcouffe & Jean-Michel Plassard, 2013. "Abondance d'éducation peut -elle nuire ? Une histoire des théories de économiques de la sur-éducation," Working Papers halshs-00827251, HAL.
    17. Sholeh A. Maani & Le Wen, 2021. "Over-education and immigrant earnings: a penalized quantile panel regression analysis," Applied Economics, Taylor & Francis Journals, vol. 53(24), pages 2771-2790, May.
    18. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2012. "Informality and overeducation in the labor market of a developing country," Working Papers XREAP2012-20, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2012.
    19. Rycx, François & Santosuosso, Giulia & Vermeylen, Guillaume, 2022. "The Over-education Wage Penalty Among PhD Holders: A European Perspective," GLO Discussion Paper Series 1126, Global Labor Organization (GLO).
    20. Gradstein, Mark & Brückner, Markus, 2013. "Income and schooling," CEPR Discussion Papers 9365, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    underemployment; university professionals; skilled labor; overeducation; higher education; educational mismatch;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izawol:journl:2018:n:165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Institute of Labor Economics (IZA) (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.