Has the Value of a Degree Fallen? Cross-Sectional versus Time-Series Evidence
Several authors have argued that the position of graduates in the labour market has deteriorated over the past 10 to 15 years. This has important policy implications, especially, at a time when the government is planning to expand the higher education system substantially, and to impose a special tax on tertiary students. This paper examines the evidence for the belief of falling returns to higher education. It shows how analyses of changes over time in rates of return estimated from single-period cross-sections can be misleading, and examines the performance of successive cohorts of new graduates in terms of their employment status, starting salaries, industry of employment, and the kinds of work they do. Copyright 1991 by The Economic Society of Australia.
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Volume (Year): 0 (1991)
Issue (Month): 0 (Supplement)
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