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Graduate Employment in the UK: An Application of the Gottschalk-Hansen Model

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Author Info
Grazier, Suzanne () (University of Wales, Swansea)
O'Leary, Nigel C. () (University of Wales, Swansea)
Sloane, Peter J. () (University of Wales, Swansea)

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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 markups 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 markup within occupations, we find that the employment of graduates in non-graduate jobs has declined over time. Hence, there is no evidence of an over-production of graduates in the UK.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3618.

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Date of creation: Jul 2008
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Handle: RePEc:iza:izadps:dp3618

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Related research
Keywords: employment wages education graduates

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J0 - Labor and Demographic Economics - - General
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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  1. 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. [Downloadable!]
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  2. Cardoso, Ana Rute, 2007. "Jobs for young university graduates," Economics Letters, Elsevier, vol. 94(2), pages 271-277, February. [Downloadable!] (restricted)
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This page was last updated on 2008-12-1.

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