Higher education expansion and unskilled labour market outcomes

Oppedisano, V. 2014. Higher education expansion and unskilled labour market outcomes. Economics of Education Review. 40, pp. 1-24. doi:10.1016/j.econedurev.2014.03.005

TitleHigher education expansion and unskilled labour market outcomes
AuthorsOppedisano, V.
Abstract

The increasing demand for higher education reduces the supply and changes the composition of unskilled secondary school graduates, and it may therefore affect their labour market outcomes. However, there is little empirical evidence on these effects. This paper analyses a large-scale expansion of higher education supply in Italy, which occurred at the end of the 1990s, to estimate the effects of the policy on the secondary school graduates' probability of being inactive, employed, unemployed, and on their wages. Robust difference-in-differences estimates show that the probability of being inactive decreases by 4.5 percent, as the policy significantly displaces individuals from inactivity. Those shifting across educational level have middle ability but favourable parental background, and would have worked in the family firm, or waited for a public competition had the expansion not took place, indicating that a new campus nearby induces mainly those with a low opportunity cost to enrol in university. Lack of significant effects on the labour market outcomes of the workforce provides evidence in favour of the human capital hypothesis. However, the policy may have induced too little variation in the workforce to distinguish between the human capital and signalling theory.

KeywordsInactivity, Higher Education Expansion, Signalling, Human Capital.
Article number40
JournalEconomics of Education Review
Journal citation40, pp. 1-24
ISSN0272-7757
Year2014
PublisherElsevier
Digital Object Identifier (DOI)doi:10.1016/j.econedurev.2014.03.005
Publication dates
Published27 Mar 2014
PublishedJun 2014

Related outputs

Should I stay or should I go? Sibling effects in household formation
Aparicio-Fenoll, A. and Oppedisano, V. 2016. Should I stay or should I go? Sibling effects in household formation. Review of Economics of the Household. 14 (4), pp. 1007-1027. doi:10.1007/s11150-016-9325-1

What are the causes of educational inequality and their evolution over time? Evidence from PISA
Oppedisano, V. and Turati, G. 2015. What are the causes of educational inequality and their evolution over time? Evidence from PISA. Education Economics. 23 (1), pp. 3-24. doi:10.1080/09645292.2012.736475

Fostering household formation: evidence from a Spanish rental subsidy
Aparicio-Fenoll, A. and Oppedisano, V. 2015. Fostering household formation: evidence from a Spanish rental subsidy. The B.E. Journal of Economic Analysis & Policy. 15 (1), pp. 53-84. doi:10.1515/bejeap-2014-0003

Should cash transfer be conditional? Condition, preventive care, and health outcomes
Attanasio, O., Oppedisano, V. and Vera-Hernández, M. 2015. Should cash transfer be conditional? Condition, preventive care, and health outcomes. American Economic Journal: Applied Economics. 7 (2), pp. 35-52. doi:10.1257/app.20130126

The surprising effect of larger class sizes: evidence using two identification strategies
Denny, K. and Oppedisano, V. 2013. The surprising effect of larger class sizes: evidence using two identification strategies. Labour Economics. 23 (4), pp. 57-65. doi:10.1016/j.labeco.2013.04.004

The (adverse) consequences of expanding higher education: evidence from Italy
Oppedisano, V. 2011. The (adverse) consequences of expanding higher education: evidence from Italy. Economics of Education Review. 30, pp. 997-1008. doi:10.1016/j.econedurev.2011.04.010

Private school quality in Italy
Bertola, G., Checchi, D., Oppedisano, V. and Checchi, D. 2007. Private school quality in Italy. Giornale degli Economisti e Annali di Economia. 66 (3), pp. 375-400.

Permalink - https://westminsterresearch.westminster.ac.uk/item/9vx76/higher-education-expansion-and-unskilled-labour-market-outcomes


Share this
Tweet
Email