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The employability of young graduates in Europe: Analysis of the ET2020 benchmark

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  • Garrouste, Christelle
  • Rodrigues, Margarida

Abstract

The Education Council has adopted in May 2012 a new benchmark on the employability of graduates from education and training that aims at measuring the contribution of education and training to the transition from education to employment. This new benchmark is defined as the share of young people employed among the 20-34 years old, who graduated 1, 2 or 3 years before, and are not currently in education or training. It is computed using the annual Labour Force Survey (LFS) microdata. This report aims at analyzing the determinants of the employability of the individuals targeted by the benchmark. It starts with a short presentation of the benchmark indicator. It then estimates the probability of being employed for the 20-34 years old cohort that graduated one to three years before and is not currently enrolled in any further education or training activity,controlling for individual characteristics and institutional factors. In addition to the annual LFS data, we also make use of the LFS ad-hoc module of 2009 to identify more specifically, at country level, the role played by the orientation of the degree and the acquisition of a professional experience during the time of studies. Among those who are employed, we then analyze the nature of that employment by estimating the probability of having a permanent vs. temporary contract and the probability of working full-time vs. part-time. Regarding the probability of being employed, we find that the contribution of education attainment is significant and constant, even after controlling for labour market contextual variables. Whereas education attainment is an important determinant for working full-time, it does not play a role in explaining the probability of having a permanent contract. We find that, overall, having a vocational oriented degree and/or working during studies does not affect significantly the probability of having a job. On the other hand, for a few countries, these two factors are important and our analysis shows that among the two, working during studies proves to be a more significant factor than the sole orientation of the degree.

Suggested Citation

  • Garrouste, Christelle & Rodrigues, Margarida, 2012. "The employability of young graduates in Europe: Analysis of the ET2020 benchmark," MPRA Paper 49919, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49919
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    References listed on IDEAS

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    1. Ronald W. McQuaid & Colin Lindsay, 2005. "The Concept of Employability," Urban Studies, Urban Studies Journal Limited, vol. 42(2), pages 197-219, February.
    2. Garrouste, Christelle, 2011. "Towards a benchmark on the contribution of education and training to employability: methodological note," MPRA Paper 37153, University Library of Munich, Germany.
    3. Andries GRIP & Jasper LOO & Jos SANDERS, 2004. "The Industry Employability Index: Taking account of supply and demand characteristics," International Labour Review, International Labour Organization, vol. 143(3), pages 211-233, September.
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    1. Christelle Laetitia Garrouste & Margarida Rodrigues, 2014. "Employability of young graduates in Europe," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(4), pages 425-447, July.
    2. Constanta-Nicoleta Bodea & Maria-Iuliana Dascalu & Gordana Velikic & Stelian Stancu, 2016. "Lifelong Learning and Employability in the Danube Region Countries: Influences and Correlations," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(43), pages 521-521, August.

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    More about this item

    Keywords

    Employability; Youth school-to-work transition; ET2020 Benchmark indicator;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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