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Job competition and the wage curve

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  • Longhi, Simonetta

Abstract

We test whether in Great Britain the recent increase in the supply of university graduates has a negative impact on their wages, and analyse to what extent the local labour market for graduates should be seen as regional rather than national. We do this by computing two measures of job competition amongst graduates: the first assumes that the labour market for graduates is regional, while the second assumes that it is national. We then compare the two estimated wage impacts. We find that job competition amongst graduates has a negative impact on graduate wages, that the labour market for graduates appears to be regional, and that a large part of the regional imbalance between labour supply and demand is corrected by commuting rather than migration. Also, the wage impact of job competition seems to differ by gender and across groups of occupations.

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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2007-24.

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Date of creation: 24 Oct 2007
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Publication status: published
Handle: RePEc:ese:iserwp:2007-24

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Postal: Publications Office, Institute for Social and Economic Research, University of Essex, Wivenhoe Park, Colchester, Essex CO4 3SQ UK
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Cited by:
  1. repec:ese:iserwp:2009-17 is not listed on IDEAS
  2. Blien, Uwe & Messmann, Susanne & Trappmann, Mark, 2012. "Do reservation wages react to regional unemployment?," IAB Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] 201222, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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