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The Dynamics of Job Creation and Destruction for University Graduates: Why a Rising Unemployment Rate Can Be Misleading

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Author Info
Cardoso, Ana Rute () (IZA Bonn and University of Minho, Portugal)
Ferreira, Priscila (University of Minho, Portugal)

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Abstract

This study uses a matched employer-employee data set on the Portuguese economy to analyze systematic information on job creation and job destruction for university graduates, compared to other groups of workers. We find that the unemployment rate can provide a misleading idea of the dynamics in labor demand and of the employment prospects for university graduates. The pessimistic view that seems to be popular nowadays, stating that the expansion of higher education may have gone too far and that investment in a higher education degree has become a too risky business, possibly not worthwhile, as employers are no longer keen on recruiting newly graduate workers, does not find support in the empirical evidence for the Portuguese economy.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 623.

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Length: 22 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:iza:izadps:dp623

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Related research
Keywords: gross job flows; unemployment;

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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
J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs

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References listed on IDEAS
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.:
  1. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. " Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    Other versions:
  2. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 61(3), pages 397-415, July. [Downloadable!] (restricted)
    Other versions:
  3. Blanchard, Olivier Jean & Diamond, Peter, 1992. "The Flow Approach to Labor Markets," American Economic Review, American Economic Association, vol. 82(2), pages 354-59, May. [Downloadable!] (restricted)
    Other versions:
  4. Belzil, Christian, 2000. "Job Creation and Job Destruction, Worker Reallocation, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 183-203, April. [Downloadable!] (restricted)
  5. Garibaldi, Pietro & and Mauro, Paolo, . "Job Creation: Why Some Countries Do Better," IMF Economic Issues 20, International Monetary Fund. [Downloadable!]
  6. John Baldwin & Timothy Dunne & John Haltiwanger, 1998. "A Comparison Of Job Creation And Job Destruction In Canada And The United States," The Review of Economics and Statistics, MIT Press, vol. 80(3), pages 347-356, August. [Downloadable!] (restricted)
    Other versions:
  7. Steven J. Davis & John Haltiwanger, 1990. "Gross Job Creation and Destruction: Microeconomic Evidence and Macroeconomic Implications," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 123-186 National Bureau of Economic Research, Inc. [Downloadable!]
  8. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932.
Full references

Cited by:
(explanations, 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.)

  1. Anabela Botelho & Lígia Pinto, 2003. "Students' expectations of the economic returns to college education Results of a controlled experiment," Working Papers 27, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho. [Downloadable!]
  2. Budria, Santiago & Nunes, Celso, 2005. "Education and Wage Inequality in Portugal," MPRA Paper 1099, University Library of Munich, Germany. [Downloadable!]
  3. Almas Heshmati, 2007. "Labor Market Policy Options of the Kurdistan Regional Government," IZA Discussion Papers 3247, Institute for the Study of Labor (IZA). [Downloadable!]
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This page was last updated on 2009-11-23.

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