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Chasing Graduate Jobs?

Author

Listed:
  • Irene Mosca

    () (Trinity College Dublin)

  • Robert Wright

    () (Department of Economics, University of Strathclyde)

Abstract

This paper examines empirically the relationship between under-employment and migration amongst five cohorts of graduates of Scottish higher education institutions with micro-data collected by the Higher Education Statistical Agency. The data indicate that there is a strong positive relationship between migration and graduate employment—those graduates who move after graduation from Scotland to the rest of the UK or abroad have a much higher rate of graduate employment. Versions of probit regression are used to estimate migration and graduate employment equations in order to explore the nature of this relationship further. These equations confirm that there is a strong positive relationship between the probability of migrating and the probability of being in graduate employment even after other factors are controlled for. Instrumental variables estimation is used to examine the causal nature of the relationship by attempting to deal with the potential endogeneity of migration decisions. Overall the analysis is consistent with the hypotheses that a sizeable fraction of higher education graduates are leaving Scotland for employment reasons. In turn this finding suggests the over-education/under-employment nexus is a serious problem in Scotland.

Suggested Citation

  • Irene Mosca & Robert Wright, 2011. "Chasing Graduate Jobs?," Working Papers 1135, University of Strathclyde Business School, Department of Economics.
  • Handle: RePEc:str:wpaper:1135
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    File URL: http://www.strath.ac.uk/media/1newwebsite/departmentsubject/economics/research/researchdiscussionpapers/2011/11-35-Final.pdf
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    References listed on IDEAS

    as
    1. H. Battu & C.R. Belfield & P.J. Sloane, 2000. "How Well Can We Measure Graduate Over- Education and Its Effects?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171(1), pages 82-93, January.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Scotland; under-employment; over-education; higher education graduates;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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