Higher education demand in spain: The influence of labour market signals and family background

Like many developed countries, Spain has experienceda growth in the demand for higher education over thelast twenty years, despite diverse economic cycles. Since this demand does not slow down in the mediumterm, the objective of this study is to analyse, fromstatistical labour force sources since 1987, twopotential influences: family characteristics andlabour market signals.The theoretical framework used here is the humancapital theory, which is tested through discretechoice models where the selection process of youngpeople through the education system is considered. Thechief results may be summarised as follows: firstly,family characteristics are important elements in thedemand for higher education, especially the mother'seducation attainment, which is even more determinantthan that of the father. Secondly, the labour marketsignals in Spain have an influence on the demand forhigher education: as a signal of both the opportunitycost of finding a job if not going to university andthe employment expectations for each releVanteducation level.