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Effects of Tertiary Expansion: Crowding-out effects and labour market matches for the higher educated

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  • Bo Hansson

    (OECD)

Abstract

This paper examines crowding-out effects and the labour market match for the tertiary educated in 26 OECD countries, using attainment data and data on labour market outcomes from Education at a Glance 2006. A first-difference approach is applied on a three-period, pooled country-panel to examine the effects of changes in tertiary attainment levels against changes in labour market outcomes over time. The policy questions in this paper focus on the potential negative short-term effects that mismatches between the supply of and demand for higher-educated individuals might bring about. There is no evidence in the current data suggesting any crowding-out effects of lower-educated from higher-educated individuals. On the contrary, there seems to be positive employment effects for individuals with less education in countries expanding their tertiary education. Labour market outcomes for the upper secondary educated appears to be less influenced by the expansion of tertiary education, but there is no indication that tertiary educated individuals, on average, are displacing (crowding out) upper secondary educated individuals from the labour market. Similarly, the job market for the tertiary educated appears to be little influenced by the expansion of tertiary education. There are some indications that relative unemployment (relative to upper secondary) for the tertiary educated has been diluted to some extent, but this appears to be more related to the upper secondary educated, relatively speaking, strengthening their labour market positions vis-à-vis tertiary educated individuals in general. The earnings advantage (premium) for tertiary educated individuals in comparison with upper secondary educated individuals is still on the rise, which suggests that, on the whole, demand outstrips supply in most countries. Cette étude examine l'adéquation sur le marché du travail des diplômés de l'enseignement tertiaire et les effets de progression du chômage chez les moins qualifiés dans 26 pays de l'OCDE, sur la base de données portant sur le niveau d'enseignement et la situation sur le marché du travail publiées dans l'édition 2006 de Regards sur l'éducation. Afin d'analyser les effets de l'évolution des taux d'obtention d'un diplôme tertiaire par rapport à l'évolution au fil du temps de la situation sur le marché du travail, une approche de différence première a été appliquée à un échantillon de pays mis en commun sur trois périodes différentes. Les questions d'action publique abordées dans cette étude se concentrent notamment sur les effets négatifs à court terme que peut occasionner une inadéquation de l'offre par rapport à la demande d'individus titulaires d'un diplôme de l'enseignement tertiaire. Les données actuellement disponibles ne fournissent aucune preuve confirmant la thèse d'une mainmise des plus qualifiés sur l'emploi. À l'inverse, un effet positif sur l'emploi pour les individus moins éduqués semble s'instaurer dans les pays qui développent leur enseignement tertiaire. La situation sur le marché de l'emploi des titulaires d'un diplôme du deuxième cycle du secondaire paraît moins influencée par l'expansion de l'enseignement tertiaire, bien qu'en moyenne, aucun élément ne semble indiquer que les individus titulaires d'un diplôme tertiaire supplantent les diplômés du deuxième cycle du secondaire dans la course à l'emploi. Dans le même ordre d'idées, le marché de l'emploi des diplômés du tertiaire semble peu influencé par l'expansion de l'enseignement tertiaire. Certains éléments indiquent que le taux de chômage relatif des diplômés du tertiaire (c'est-à-dire par rapport à celui des diplômés du deuxième cycle du secondaire) a connu un certain recul, mais ce phénomène paraît somme toute davantage imputable au renforcement par les diplômés du deuxième cycle du secondaire de leur position sur le marché du travail vis-à-vis des diplômés du tertiaire en général. L'avantage salarial des diplômés du tertiaire par rapport aux diplômés du niveau inférieur continue de progresser, ce qui suggère une distanciation générale de la demande par rapport à l'offre dans la plupart des pays.

Suggested Citation

  • Bo Hansson, 2007. "Effects of Tertiary Expansion: Crowding-out effects and labour market matches for the higher educated," OECD Education Working Papers 10, OECD Publishing.
  • Handle: RePEc:oec:eduaab:10-en
    DOI: 10.1787/085513474523
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    Cited by:

    1. Castro, Juan Francisco & Ortega, Lorena & Yamada, Gustavo & Mata, David, 2022. "The Magnitude and Predictors of Overeducation and Overskilling in Latin America: Evidence from PIAAC," IZA Discussion Papers 15143, Institute of Labor Economics (IZA).
    2. María Paola Sevilla & Mauricio Farías & Daniela Luengo-Aravena, 2021. "Patterns and Persistence of Educational Mismatch: A Trajectory Approach Using Chilean Panel Data," Social Sciences, MDPI, vol. 10(9), pages 1-24, September.
    3. Eglitis, Janis & Panina, Ludmila, 2010. "Tertiary education in Latvia today and tomorrow," Perspectives of Innovations, Economics and Business (PIEB), Prague Development Center (PRADEC), vol. 4(1), pages 1-5, February.
    4. Janis Eglitis & Ludmila Panina, 2010. "Tertiary Education In Latvia Today And Tomorrow," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 4(1), pages 93-97, February.
    5. Schultheiss, Tobias & Pfister, Curdin & Gnehm, Ann-Sophie & Backes-Gellner, Uschi, 2023. "Education expansion and high-skill job opportunities for workers: Does a rising tide lift all boats?," Labour Economics, Elsevier, vol. 82(C).

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