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Local Labor Markets and Higher Education Mismatch: What is The Role of Public and Private Institutions?

Author

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  • Arias Ortiz, Elena
  • Kaltenberg, Mary
  • Jara-Figueroa, Cristian
  • Bornacelly, Iván
  • Hartmann, Dominik

Abstract

We analyze mismatches between local labor markets and higher education enrollments in 22 educational fields across 137 mesoregions in Brazil between 2009 and 2016 using a two-stage regression model. The results show that local labor markets have a significant effect on enrollment rates by field in higher education institutions and need to be considered by educational policies to prevent skill mismatches. Moreover, a large share of public universities, urban population and low unemployment rates are associated with low mismatches. Public universities address skills shortages, particularly in poor regions and natural sciences, better than private universities that contribute to oversupply in certain fields, e.g. in business or law. This is an important shortcoming in countries like Brazil where almost 90% of universities are private.

Suggested Citation

  • Arias Ortiz, Elena & Kaltenberg, Mary & Jara-Figueroa, Cristian & Bornacelly, Iván & Hartmann, Dominik, 2020. "Local Labor Markets and Higher Education Mismatch: What is The Role of Public and Private Institutions?," IDB Publications (Working Papers) 10319, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10319
    DOI: http://dx.doi.org/10.18235/0002295
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    More about this item

    Keywords

    local labor markets; skills mismatch; higher education; public and private institutions;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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