Labour market mismatch among UK graduates: An analysis using REFLEX data

There is much disagreement in the literature over the extent to which graduates are mismatched in the labour market and the reasons for this. In this paper we utilise the Flexible Professional in the Knowledge Society (REFLEX) data set to cast light on these issues, based on data for UK graduates. We find substantial pay penalties for overeducation for both sexes and for overskilling in the case of men only. When both education and skill mismatch variables are included together in the model only overskilling reduces job satisfaction consistently for both sexes. Using job attributes data it appears that the lower wages of the overqualified may in part simply represent a compensating wage differential for positive job attributes, while for men at least there are real costs to being overskilled.     

Lifelong learning and the continued participation of older Norwegian adults in employment

The number of people aged 60 and over across the globe is expected to double by 2050, reaching a share of more than 20 percent of the population total. Governments are therefore taking more and more policy actions to encourage ageing workers to extend their working lives and their employers to retain them. According to the OECD lifelong learning opportunities and inclusive labour markets will be essential to ensuring that workers of all educational backgrounds have the possibility of extending their working lives. This article examines the relationship between adult education completed after age 40 and the subsequent active participation of older adults in employment, using individual register data from Statistics Norway. The results show a substantial effect of upgrading formal education on subsequent labour market participation. Overall effects are quite similar for males and females. Attaining a lower level tertiary degree has the largest impact on labour market participation both for males and females. Completing a secondary education has a strong, long term impact among males. The results suggest that facilitating access to formal education among older workers may be an important contribution to extending working lives.     

Social selection in higher education. Enrolment,dropout and timely degree attainment in Italy

In this paper, we provide a comprehensive picture of social selectivity in higher education in Italy by focusing on enrolment and two alternative indicators of success: retention and timely completion. The existing literature has shown that young individuals of disadvantaged backgrounds have lower enrolment probabilities and higher chances of withdrawal. This paper analyses the size and features of this cumulative disadvantage, shaping the chances of high-school leavers of eventually attaining the university degree. We analyse whether social background inequalities are stronger at enrolment or at later outcomes, and how these inequalities vary with previous schooling experience. We confirm previous evidence that disadvantaged groups with respect to enrolment are also disadvantaged on persistence, add new findings on timely completion and show that cumulative inequalities are very strong. Inequalities are strongest among students holding technical and vocational high-school qualifications and weakest among well-performing students from lyceums. In addition, we examine the role of labour market conditions and whether they explain geographical differences. Enrolment, retention and timely completion probabilities appear negatively related to local youth unemployment rates, suggesting that with poor labour market prospects, individuals lose motivation and reduce their engagement in education.     

Is It worth Being ‘Traditional’ in An Era of Mass Individualization?

This article deals with the question of how the segmentation of higher education participation connects with the segmentation of the graduate labour market into jobs with different levels of quality. With data comprising educational and labour market histories of graduates with Master's degree from nine European countries, the author analyses how graduates with traditional higher education careers come off on the European labour market compared to those with non‐traditional educational careers. When examining the quality of the employment that graduates obtain early on in their career, three criteria are applicable: the job stability and the quality of the education‐job match to both the level of their studies and skills. The method used in the analysis is logistic regression. Results indicate that being a traditional/non‐traditional graduate does affect the odds of finding proper employment; however, whether the influence is positive or negative greatly varies with respect to gender; the number of graduates with the same type of educational career on the local market and the criteria used to evaluate the adequacy of the employment.     

Economic returns to speaking ‘standard Mandarin’ among migrants in China's urban labour market

This article uses data from the China Urban Labour Survey administered across 12 cities in 2005 to estimate the economic returns to speaking standard Mandarin among internal migrants in China's urban labour market. The article builds on studies that estimate the economic returns to international immigrants of being fluent in the major language of the destination country and studies that estimate the economic returns to proficiency in the national language among groups of people who speak a minority language. Importantly, we control for potential endogeneity bias in the estimates of the effect of language fluency on earnings. We find that for migrants as a whole, there are considerable economic returns to speaking standard Mandarin. We also find gender differences. While the coefficient on fluency in standard Mandarin is statistically significant and large for females, the coefficient on fluency is statistically insignificant for males. One possible explanation for this finding is that female migrant workers are engaged more in occupations which have greater contact with urban locals and hence the return to investment in language skills is higher.     

Human capital linkages to labour productivity: implications from Thai manufacturers

Human capital investment is a necessary condition for improving labour market outcomes in most countries. Empirical studies to investigate human capital and its linkages on the labour demand side are, however, relatively scarce due to limitations of firm-level data-sets. Using firm-level data from the Thai manufacturing sector, this paper aims to investigate the effects of skill and human capital on labour productivity. Costs and benefits of human capital improvement are compared indicating that hiring workers who have higher education as well as providing them with in-service training has a statistically and significantly positive impact on an increase in labour productivity. However, hiring workers who have higher education yields less benefit than costs which come from higher average wage expenditures. However, providing training should contribute more benefit than cost. Besides education and training measures, we also measure workers’ skill levels into cognitive skills and non-cognitive skills and find that skill in information technology is found to be the most important cognitive skill for increasing labour productivity among Thai manufacturers. Non-cognitive skills such as those in leadership, time-management and communication are also important and seem to have positive relationship to labour productivity among Thai manufacturers.     

Participation in job-related training in European countries: the impact of skill supply and demand characteristics

Ageing populations and accelerating economic change make it increasingly important to update the skill levels of populations over the whole life course. Adult education is believed to allow adults’ skills to adapt continuously to constantly changing economic requirements. Both research into adult education, and discussions on lifelong learning policies have been dominated by a supply side view of the labour market (the human capital approach), which has tended to underplay the role of the demand side of the labour market. This paper aims to extend previous analyses by examining how both labour supply and demand characteristics influence participation in non-formal job-related education in countries with different skill formation systems. The paper emphasises skill use at work. The purpose is to understand better the relationship between participation in adult education and workers’ skills profiles as well as the extent to which those skills are used in jobs and how this relationship differs in different countries. We used data from the Programme for the International Assessment of Adult Competencies and applied logistic regression analysis.     

Does a Management Degree Do the Business for Women in the Graduate Labour Market?

The increasing dominance of an economic ideology of higher education, that its principal role is to contribute to national competitiveness, has increased focus on the employability of graduates and their transition into the labour market. Drawing on a major study of the early career paths of 1995 graduates from 38 UK higher education institutions, this paper looks specifically at graduates from business and management programmes. Such graduates would apparently be attractive to employers seeking to recruit degree holders with specific transferable skills who might be expected to ‘hit the ground running’ once in organisations. The paper seeks to address the question of what effect holding a business degree has on the employment outcomes in comparison with other degree disciplines and whether or not there is any gender effect upon relative success in the labour market.     

School-to-work transitions in the OECD: do education systems make a difference?

High unemployment among the young is a concern in many OECD countries. A key issue for policy makers is whether the education system has a role to play in assisting the transition from education to work or whether economic issues dominate. This paper uses OECD country-level data to see whether the structure of countries’ education systems, characterised by the level of participation by age at the various ISCED education levels, affects systematically the level of unemployment for the cohorts aged 20–24 and 25–29 years who should have largely completed their transition to work. Various confounding factors, including overall labour market conditions and demographic structures, are accounted for. We find that the structure of education systems does make a difference, although the general state of the labour market is critical.     

经济转型期人力资本和社会资本对职工收入影响的社会学研究

处于社会转型阶段的中国，以建立市场体制为导向的改革行动引起了社会资源配置方式的转变，职工收入分配呈现“多元化”格局。本文试图定量分析人力资本和社会资本对不同资源配置环境下职工收入的影响，导入路径依赖变量进行解释。研究的主要发现是：人力资本在转型社会的劳动市场对职工收入有相当的影响，市场化程度越高，教育的收入回报越大；人力资本中的工龄，对职工收入几乎没有影响，以再分配为体制背景的年资效应业已消失。在急剧进行市场化的原再分配体制中，工龄对于收入具有负效应，社会资本的回报最低。     

Higher Education: is more better? Gender Differences in Labour Market Returns to Tertiary Education in Israel

Research on the transition from post-secondary education to the labour market refers mainly to differences between academic and vocational tracks in secondary education. In this paper we analyse Israeli data focusing on the transition from different levels of post secondary degrees and from various fields of study to the labour market. We examine three labour market outcomes: employment status, occupational prestige attainment, and job match. Data are drawn from a supplement to the 1983 Israeli Census, which includes a random sample of Israel's tertiary education degree holders (vocational and academic). Our central finding is that men who work in female-dominated occupations get better returns than women, and women who work in male-dominated occupations get better returns than men. We discuss several explanations of this finding.     

Degrees of closure and economic success in the Norwegian labour market: field of study and non-Western immigrant performance

This article compares outcomes in the Norwegian labour market for non-Western immigrants and majority colleagues with professional or master’s degrees within three different fields of study: health science, social science and natural science. Professions have a higher degree of occupational closure, which may entail that non-Western immigrants with relevant educations achieve economic parity with the majority. Comparing employment rates and income equality among professionals and others with a master’s degree tests whether the professions in each field yield more egalitarian outcomes. The fields are analysed separately and the results show that a professional degree in natural science or social science has no equalising effect. Education leading to a health profession provides immigrants with a ‘labour market shelter’.     

Do grades in higher education matter for labour market rewards? A multilevel analysis of all Norwegian graduates in the period 1990–2006

This paper examines the effects of grades from higher education on labour market outcomes. Economic theory predicts that grades are rewarded in the labour market because employers regard them as an expression of valuable skills or a signal of other sought after attributes. Social closure, however, may give reason to expect no effects. Whether good grades are rewarded in the labour market is thus uncertain. This paper addresses this question by examining whether employers tend to reward good grades in the form of employment and higher income. Previous research has demonstrated that the returns to education vary according to structural–institutional labour market settings. We examined the interaction effects between grades and field-specific characteristics and between grades and sector by analysing data on all graduates in these educational programmes at Norwegian universities and university colleges from 1990 through 2006. The education data are linked with multiple other data sources such as the national tax register and the national employment register. We find that good grades have positive effects on both income and employment and that these effects are influenced by both the type of education and sector.     

Returns to education and economic transition: an international comparison

This paper compares the returns to education in transitional economies in Central and Eastern Europe (CEE), such as Bulgaria, the Czech Republic, Romania, Russia, Slovak Republic and the Ukraine in the 1990s, and in China in the 1980s and 1990s. In the pre‐transition period, the returns to education in the six CEE countries were low at about 2–4%, while those in China were even lower at less than 2%. As the process of transition towards a market economy evolved over time, the returns to education steadily increased, and non‐state sector workers and young workers were rewarded with higher returns to their education than their counterparts in the state sector and older age categories. The marginal returns to university education are the highest of all of the marginal returns to various education levels. Moreover, the results show that it took about a decade for the six CEE countries, and two decades for China, to raise their respective returns to education to the 10% level.     

Aggregate unemployment decreases individual returns to education

Aggregate unemployment may affect individual returns to education through qualification-specific responses in participation and wage bargaining. This paper shows that an increase in regional unemployment by 1% decreases returns to education by 0.005 percentage points. This implies that higher skilled employees are better sheltered from labour market changes with respect to their jobs but they encounter larger wage changes than less skilled employees. We use representative individual data and panel variation in unemployment between German regions and employee groups. We demonstrate that our results are robust with respect to aggregation bias, time lags and potential endogeneity of the unemployment variable.     

Limitations on the human capital transferability of adult migrants in Spain: Incentive or barrier for a new investment in education?

Many empirical studies on immigrant integration document the benefits of an education acquired in the country of destination. In this article; we study how the degree of human capital transferability affects an immigrant's chances of studying in Spain. We used data from the Spanish Labour Force Survey (2008–2015) for a sample of adults aged 18–55 who had left the educational system. The main findings show that natives are the ethnic group with the highest likelihood of re-enrolling in education. Amongst immigrants, those with fewer limitations on human capital transferability also invest more. These results question the predictions of the Immigrant Human Capital Investment model which expect that immigrants whose human capital depreciates upon arrival and those who can obtain a higher return on a new investment in education are therefore more likely to study. Moreover, the effect of skill transferability differs depending on the type of obstacle and the kind of education. Immigrants with less linguistic and cultural familiarity with the host country are less likely to undertake non-formal education than formal education. However, when the transferability obstacles are related to administrative requirements and legal restrictions, the probability of investing in non-formal education is higher. We conclude that immigrants with low skill transferability are not only less well integrated in the labour market upon arrival, but are also less able to redress that disadvantage through a new investment in education.     

The international transferability of immigrants’ human capital

This paper uses the approach in the under/over education literature to analyze the extent of matching of educational level to occupational attainment among adult native born and foreign born men in the US, using the 2000 Census. Overeducation is found to be more common among recent labor market entrants, while undereducation is more likely among older workers. Among immigrants, greater pre-immigration labor market experience is associated with poorer job matches, presumably due to the less-than-perfect international transferability of foreign experience. A longer duration in the US, however, is associated with a lower probability of being overeducated and a greater probability of being undereducated. This is consistent with immigrants being favorably selected for occupational advancement but this effect becomes realized only after overcoming the disadvantages of the less-than-perfect international transferability of their pre-immigration skills.     

On the determinants of employment-related organised education and informal learning

This paper analyses the distribution of employment-related organised education and informal learning in the Canadian workforce. The paper draws on a large-scale survey, the Changing Nature of Work and Lifelong Learning (WALL), which was based on structured and standardised telephone interviews with a representative sample of 5783 Canadian members of the employed labour force. In exploring the determinants facilitating employment-related informal learning, three analytical categories of factors derived from previous research on learning participation were used: individual-level factors, job characteristics and workplace environment. The analyses focus on differences in individuals, jobs and workplace characteristics among adult workers who acquired or improved their job-related skills through different training pathways. In addition, analyses were performed to compare the extent to which these factors differ in their influence on learning decisions among workers who combine both organised education and informal learning and those who receive only informal learning. The results indicate that important predictors of participation in employment-related organised education and informal learning are age, educational attainment, learning skills, occupational class, education-job relation, degree of autonomy, degree of labour intensity, principal area of production and organisation size.     

THE EDUCATION MARKET,QUALIFICATIONS, AND EUROPEAN INTEGRATION

This article examines the relationship between the development of the education market and the demand for qualified personnel in the context of European integration. To begin with, a model portraying the relationships between the education and the labour market is introduced, following which the old but still topical qualification discourse with its theses with regard to overqualification and underutilization, is discussed. Despite the modern European Communities’ educational ideology of technological progress and of the thesis of increasing qualifications, questions which are still worth asking are what kinds of demands actually exist in the labour market for increasingly highly trained labour and what kinds of educational policy the new United States of Europe should have.