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The boom in university graduates and the risk of underemployment

Author

Listed:
  • Gustavo Yamada

    (Universidad del Pacífico, Peru, Banco Central de Reserva del Perú, and IZA, Germany)

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, 2015. "The boom in university graduates and the risk of underemployment," IZA World of Labor, Institute of Labor Economics (IZA), pages 165-165, July.
    • Handle: RePEc:iza:izawol:journl:y:2015:p:166
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    Citations

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    Cited by:

    1. Zehra Bilgen SUSANLI, 2017. "Underemployment in the Turkish Labor Market," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(33).
    2. Agénor, Pierre-Richard & Lim, King Yoong, 2018. "Unemployment, growth and welfare effects of labor market reforms," Journal of Macroeconomics, Elsevier, vol. 58(C), pages 19-38.

    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

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