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Earning Capacity of Sustainable Education - A Review of Current Perceptions Regarding the Salaries, Under-employment and Over-education of Higher-Education Graduates and their Potential Application in Sustainability Assessments

Author

Listed:
  • Antonios Maragakis
  • Andy van den Dobbelsteen
  • Alexandros Maragakis

Abstract

There is a growing need to understand the economic returns of degrees as a function of a sustainable institution. The empirical data presented in this paper suggests that there is a difference between the economic perception of higher education stakeholders and reality. The data showed that the most important economic metric for a graduate is full-time employment. This metric, although important, is incomplete and does not address other important factors such as starting salaries and under-employment. This indicates a gap between reality and perception considering stakeholders expectation that education should not cost more than of 15% of future salaries and that the debt be repaid in less than ten years. Student’s focusing on full-time employment rather than the holistic economic realities of their educational choices may lead to an unsustainable future which is currently not captured in higher education sustainability assessments.

Suggested Citation

  • Antonios Maragakis & Andy van den Dobbelsteen & Alexandros Maragakis, 2016. "Earning Capacity of Sustainable Education - A Review of Current Perceptions Regarding the Salaries, Under-employment and Over-education of Higher-Education Graduates and their Potential Application in," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 9(3), pages 261-261, April.
    • Handle: RePEc:ibn:jsd123:v:9:y:2016:i:3:p:261
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    References listed on IDEAS

    as
    1. Anchor, John R. & Fiserová, Jana & Mars[iota]ková, Katerina & Urbánek, Václav, 2011. "Student expectations of the financial returns to higher education in the Czech Republic and England: Evidence from business schools," Economics of Education Review, Elsevier, vol. 30(4), pages 673-681, August.
    2. 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.
    3. Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 8(2), pages 121-143, June.
    4. Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Department of Economics - Working Papers Series 940, The University of Melbourne.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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