IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8413.html
   My bibliography  Save this paper

Too Many Graduates? An Application of the Gottschalk-Hansen Model to Young British Graduates between 2001-2010

Author

Listed:
  • O'Leary, Nigel C.

    (Swansea University)

  • Sloane, Peter J.

    (Swansea University)

Abstract

There is an apparent inconsistency in the existing literature on graduate employment in the UK. While analyses of rates of return to graduates or graduate mark-ups show high returns, suggesting that demand has kept up with a rapidly rising supply of graduates, the literature on over-education suggests that many graduates are unable to find employment in graduate jobs and the proportion over-educated has risen over time. Using a simple supply and demand model applied to UK data that defines graduate jobs in terms of the proportion of graduates and/or the graduate earnings mark-up within occupations, we find that there has been a shift in the likelihood of young British university graduates being employed in non-graduate jobs in the recent years of our analysis. This finding is in contrast to existing studies.

Suggested Citation

  • O'Leary, Nigel C. & Sloane, Peter J., 2014. "Too Many Graduates? An Application of the Gottschalk-Hansen Model to Young British Graduates between 2001-2010," IZA Discussion Papers 8413, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8413
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp8413.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ian Walker & Yu Zhu, 2008. "The College Wage Premium and the Expansion of Higher Education in the UK," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(4), pages 695-709, December.
    2. Nigel C. O'Leary & Peter J. Sloane, 2011. "The Wage Premium For University Education In Great Britain During A Decade Of Change," Manchester School, University of Manchester, vol. 79(4), pages 740-764, July.
    3. O'Leary, Nigel C. & Sloane, Peter J., 2005. "The Return to a University Education in Great Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 193, pages 75-89, July.
    4. Peter Gottschalk & Michael Hansen, 2003. "Is the Proportion of College Workers in Noncollege Jobs Increasing?," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 409-448, April.
    5. Amanda Gosling & Stephen Machin & Costas Meghir, 2000. "The Changing Distribution of Male Wages in the U.K," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 635-666.
    6. Francis Green & Yu Zhu, 2010. "Overqualification, job dissatisfaction, and increasing dispersion in the returns to graduate education," Oxford Economic Papers, Oxford University Press, vol. 62(4), pages 740-763, October.
    7. Walker, Ian & Zhu, Yu, 2011. "Differences by degree: Evidence of the net financial rates of return to undergraduate study for England and Wales," Economics of Education Review, Elsevier, vol. 30(6), pages 1177-1186.
    8. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
    9. Peter Elias & Kate Purcell, 2004. "Is Mass Higher Education Working? Evidence from the Labour Market Experiences of Recent Graduates," National Institute Economic Review, National Institute of Economic and Social Research, vol. 190(1), pages 60-74, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francis Green & Golo Henseke, 2016. "The changing graduate labour market: analysis using a new indicator of graduate jobs," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-25, December.
    2. David Boto-García & Marta Escalonilla, 2022. "University education, mismatched jobs: are there gender differences in the drivers of overeducation?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 861-902, October.
    3. Golo Henseke, 2019. "Against the Grain? Assessing Graduate Labour Market Trends in Germany Through a Task-Based Indicator of Graduate Jobs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 809-840, January.
    4. Kidd, Michael P. & O'Leary, Nigel & Sloane, Peter, 2017. "The impact of mobility on early career earnings: A quantile regression approach for UK graduates," Economic Modelling, Elsevier, vol. 62(C), pages 90-102.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lindley, Joanne & McIntosh, Steven, 2015. "Growth in within graduate wage inequality: The role of subjects, cognitive skill dispersion and occupational concentration," Labour Economics, Elsevier, vol. 37(C), pages 101-111.
    2. Golo Henseke, 2019. "Against the Grain? Assessing Graduate Labour Market Trends in Germany Through a Task-Based Indicator of Graduate Jobs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 809-840, January.
    3. Michela Vecchi & Catherine Robinson & Maja Savic & Marina Romiti, 2023. "Vertical and Horizontal Mismatch in the UK: Are Graduates' Skills a Good Fit for Their Jobs?," National Institute of Economic and Social Research (NIESR) Discussion Papers 548, National Institute of Economic and Social Research.
    4. Grazier, Suzanne & O'Leary, Nigel C. & Sloane, Peter J., 2008. "Graduate Employment in the UK: An Application of the Gottschalk-Hansen Model," IZA Discussion Papers 3618, Institute of Labor Economics (IZA).
    5. Michela Vecchi & Maja Savic & Marina Romiti, 2021. "Skill mismatch among UK graduates," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2021-11, Economic Statistics Centre of Excellence (ESCoE).
    6. Holmes, Craig & Mayhew, Ken, 2015. "Have UK Earnings Distributions Polarised?," INET Oxford Working Papers 2015-02, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    7. McGuinness, Seamus & Sloane, Peter J., 2011. "Labour market mismatch among UK graduates: An analysis using REFLEX data," Economics of Education Review, Elsevier, vol. 30(1), pages 130-145, February.
    8. Dickson, Matt & Harmon, Colm, 2011. "Economic returns to education: What We Know, What We Don’t Know, and Where We Are Going—Some brief pointers," Economics of Education Review, Elsevier, vol. 30(6), pages 1118-1122.
    9. Luca Cattani & Giovanni Guidetti & Giulio Pedrini, 2018. "Overeducation among Italian graduates: do different measures diverge?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 491-521, August.
    10. Dinda, Soumyananda, 2015. "Return on Universal Education: SSA Case Study on Bihar," MPRA Paper 64831, University Library of Munich, Germany, revised 06 Jun 2015.
    11. Cinzia Rienzo, 2017. "Real wages, wage inequality and the regional cost-of-living in the UK," Empirical Economics, Springer, vol. 52(4), pages 1309-1335, June.
    12. Robin Naylor & Jeremy Smith & Shqiponja Telhaj, 2016. "Graduate returns, degree class premia and higher education expansion in the UK," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 525-545.
    13. Richard Blundell & David A Green & Wenchao Jin, 2022. "The U.K. as a Technological Follower: Higher Education Expansion and the College Wage Premium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 142-180.
    14. Meroni, Elena Claudia & Vera-Toscano, Esperanza, 2017. "The persistence of overeducation among recent graduates," Labour Economics, Elsevier, vol. 48(C), pages 120-143.
    15. Luca Cattani & Giovanni Guidetti & Giulio Pedrini, 2016. "Overeducation among Italian graduates: do different measures actually diverge?," Working Papers 77, AlmaLaurea Inter-University Consortium.
    16. Verdugo, Gregory, 2014. "The great compression of the French wage structure, 1969–2008," Labour Economics, Elsevier, vol. 28(C), pages 131-144.
    17. Brian Clark & Clément Joubert & Arnaud Maurel, 2017. "The career prospects of overeducated Americans," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-29, December.
    18. L. Cattani & G. Guidetti & G. Pedrini, 2014. "Assessing the incidence and wage effects of overeducation among Italian graduates using a new measure for educational requirements," Working Papers wp939, Dipartimento Scienze Economiche, Universita' di Bologna.
    19. Walker, Ian & Zhu, Yu, 2011. "Differences by degree: Evidence of the net financial rates of return to undergraduate study for England and Wales," Economics of Education Review, Elsevier, vol. 30(6), pages 1177-1186.
    20. Hynninen, Sanna-Mari, 2009. "Is there a wage curve for the highly educated?," ISER Working Paper Series 2009-17, Institute for Social and Economic Research.

    More about this item

    Keywords

    education; wages; graduates; mismatch;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8413. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.