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Admission conditions and graduates' employability

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We evaluate the information content of admission conditions for study programs’ quality by investigating its relationship with graduates’ employability. We find that study programs with larger numeri clausi are associated with a higher probability of finding a job. Additionally, compulsory admission exams seem to be informative about study programs’ quality. Namely, study programs requiring the Math exam appear to be linked with lower unemployment propensity. Cardoso et al. (2008), however, found that those programs face lower demand when compared to other studies. These paradoxical results suggest that students’ choices may be based on insufficient information on returns to higher education investment. That information failure indicates that a Government intervention may be due.

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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 16/2008.

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Date of creation: 2008
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Handle: RePEc:nip:nipewp:16/2008

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Postal: Núcleo de Investigação em Políticas Económicas, Escola de Economia e Gestão, Universidade do Minho, P-4710-057 Braga, Portugal
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Keywords: Higher education; unemployment propensity; fractional models;

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  1. Dominic J. Brewer & Eric Eide & Ronald G. Ehrenberg, 1996. "Does It Pay To Attend An Elite Private College? Cross Cohort Evidence on the Effects of College Quality on Earnings," NBER Working Papers 5613, National Bureau of Economic Research, Inc.
  2. Brekke, Kurt Richard & Cellini, Roberto & Siciliani, Luigi & Straume, Odd Rune, 2008. "Competition and Quality in Regulated Markets: a Differential-Game Approach," CEPR Discussion Papers 6801, C.E.P.R. Discussion Papers.
  3. Rosa Branca Esteves, 2008. "Price Discrimination with Partial Information: Does it pay off?," NIPE Working Papers 12/2008, NIPE - Universidade do Minho.
  4. Delfim Gomes Neto & Francisco José Veiga, 2008. "Financial globalization, convergence and growth," NIPE Working Papers 07/2008, NIPE - Universidade do Minho.
  5. Rosa-Branca Esteves, 2012. "Price Discrimination with Private and Imperfect Information," NIPE Working Papers 12/2012, NIPE - Universidade do Minho.
  6. Buhai, Sebastian & Portela, Miguel & Teulings, Coen & van Vuuren, Aico, 2008. "Returns to Tenure or Seniority?," IZA Discussion Papers 3302, Institute for the Study of Labor (IZA).
  7. Carla Sá & Raymond Florax & Piet Rietveld, 2007. "Living-arrangement and university decisions of Dutch young adults," NIPE Working Papers 14/2007, NIPE - Universidade do Minho.
  8. Fernando Alexandre & Vasco J. Gabriel & Pedro Bação, 2008. "Taylor-type rules versus optimal policy in a Markov-switching economy," NIPE Working Papers 15/2008, NIPE - Universidade do Minho.
  9. Luís Aguiar-Conraria & Pedro Magalhães, 2010. "Referendum design, quorum rules and turnout," Public Choice, Springer, vol. 144(1), pages 63-81, July.
  10. Lommerud, Kjell Erik & Meland, Frode & Straume, Odd Rune, 2011. "Mergers and capital flight in unionised oligopolies: Is there scope for a "national champion" policy?," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 325-341, April.
  11. Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2011. "Hospital Competition and Quality with Regulated Prices," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113, pages 444-469, 06.
  12. Ana Rute Cardoso, 2008. "Demand for Higher Education Programs: The Impact of the Bologna Process," CESifo Economic Studies, CESifo, vol. 54(2), pages 229-247, June.
  13. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-32, Nov.-Dec..
  14. Alexandre, Fernando & Portela, Miguel & Sá, Carla, 2008. "Admission Conditions and Graduates' Employability," IZA Discussion Papers 3530, Institute for the Study of Labor (IZA).
  15. Vasco J. Gabriel & Paul Levine & Christopher Spencer, 2008. "How forward-looking is the Fed? Direct estimates from a ‘Calvo-type’ rule," NIPE Working Papers 09/2008, NIPE - Universidade do Minho.
  16. João Cerejeira Silva, 2008. "Young Employment, Job-Skill Composition and Minimum Wages: Evidence from a 'Natural Experiment'," NIPE Working Papers 04/2008, NIPE - Universidade do Minho.
  17. Amado, Cristina & Teräsvirta, Timo, 2008. "Modelling Conditional and Unconditional Heteroskedasticity with Smoothly Time-Varying Structure," Working Paper Series in Economics and Finance 691, Stockholm School of Economics.
  18. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  19. Smith, Jeremy & McKnight, Abigail & Naylor, Robin, 2000. "Graduate Employability: Policy and Performance in Higher Education in the UK," Economic Journal, Royal Economic Society, vol. 110(464), pages F382-411, June.
  20. Dominic J. Brewer & Eric R. Eide & Ronald G. Ehrenberg, 1999. "Does It Pay to Attend an Elite Private College? Cross-Cohort Evidence on the Effects of College Type on Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 104-123.
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Cited by:
  1. Natália P. Monteiro & Paulo Bastos, 2009. "Managers and wage policies," NIPE Working Papers 2/2009, NIPE - Universidade do Minho.
  2. Alexandre, Fernando & Portela, Miguel & Sá, Carla, 2008. "Admission Conditions and Graduates' Employability," IZA Discussion Papers 3530, Institute for the Study of Labor (IZA).

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