Jobs for Young University Graduates: Is It Worth Having a Degree?
AbstractThis study addresses the question: Are workers who hold a university degree increasingly filling job openings meant for people with lower levels of schooling? It focuses on Portugal, where the higher education system has been expanding at a fast pace and the share of university graduates in total labour force has been increasing, but where the unemployment rate for such workers has also been increasing. The analysis relies on a remarkable dataset covering the entire workforce in manufacturing and services private sectors, to implement the conceptual framework developed by Gottschalk and Hansen (2003). Results indicate that the university wage premium increased and the proportion of university graduates working in non-university jobs declined sharply over time. Therefore, no support is found for the skepticism over investment in higher education. Results are consistent with the idea that skillbiased technological progress taking place in some sectors raises the productivity of workers with higher schooling levels, thus raising their wages, which attracts new workers with high qualifications.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1311.
Length: 21 pages
Date of creation: Sep 2004
Date of revision:
Publication status: published in: Economics Letters, 2007, 94 (2), 271-277
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Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- I20 - Health, Education, and Welfare - - Education - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-09-30 (All new papers)
- NEP-EDU-2004-09-30 (Education)
- NEP-LAB-2004-09-30 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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