Skip to main content
Article thumbnail
Location of Repository

Higher education in the UK and the market for labour : evidence from the Universities' Statistical Record

By Luca Mancini


The Thesis seeks to make a contribution to our current understanding of the\ud complex relationship between higher education and the graduate labour market in\ud the UK on both a methodological and policy level. Using administrative data from\ud the Universities' Statistical Record (USR) on complete cohorts of individual\ud students who left university between 1980 and 1993, the Thesis develops along\ud three main avenues: i) identifying the key determinants of graduates' first\ud destinations (Chapters 2 and 3); ii) comparing alternative indicators of\ud employment-related university performance and assessing their robustness to data\ud aggregation (Chapter 4); iii) estimating the differences in graduates' occupational\ud earnings by degree subject (Chapter 5).\ud The study on first destination considers a broad range of possible outcomes\ud distinguishing between temporary and permanent as well as 'graduate' and 'nongraduate'\ud employment, professional training and postgraduate study, involuntary\ud unemployment and unavailability for work. The analysis reveals significant\ud effects on graduates' employability associated with gender, university type,\ud degree subject, degree class, socio-economic background, and prior qualifications\ud (Chapter 2). Moreover, the impact of all the main factors affecting graduates'\ud early careers has a significant correlation with the business cycle (Chapter 3).\ud In Chapter 4 we compare employment-related university performance indicators\ud constructed from student-level and university-level data, respectively. Despite\ud student-level data on university statistics now being publicly available, institutions\ud are currently assessed according to indicators based on university-level data,\ud implicitly obtained by averaging over individuals the corresponding student-level\ud information. We find significant differences between the two sets of indicators\ud and argue that the observed discrepancies are the result of an aggregation bias. A\ud Monte Carlo experiment is used to test the validity of this conclusion.\ud Finally, Chapter 5 looks at the differences of graduates' occupational earnings by\ud degree subject using USR and NES data from 1980 to 1993. We discuss the issue\ud of self-selection of students into the subject of study and apply three alternative\ud modelling strategies to control for self-selection: the proxy and matching method,\ud propensity score matching and a simultaneous equations model accounting for\ud 'selection on unobservables'. The evidence suggests the presence of a significant\ud selection bias originating from the unaccounted correlation between unobservable\ud individual characteristics affecting both occupational earnings and subject choice.\ud Moreover, the ranking of university subjects changes over time

Topics: HD, LB2300
OAI identifier:

Suggested articles


  1. (1975). A Disaggregate Travel Demand Model. doi
  2. (1997). A Study of the Labour Marketfor Social Science Postgraduates. IER,
  3. (1997). A Study on the Estimation and Aggregation of Disaggregate Models of Mode Choice for Freight Transport. " doi
  4. (1990). A Theory of Career Mobility. " doi
  5. (2002). Ability Sorting and the Returns to College Major. " Forthcoming in doi
  6. (1973). Aggregate Model Demand Analysis with Disaggregate Demand Models. " froceedingýs:
  7. (1975). Aggregate Travel Demand Forecasting from Disaggregated Behavioral Models: the Aggregation Issue. "
  8. (1995). Aggregated Heterogeneous Dependent Data and the Logit Model: A Suggested Approach. " doi
  9. (1978). Aggregation Bias and The Demand for Housing. " doi
  10. (1990). Aggregation Bias in Labour Demand Equations for the UK Economy. "
  11. (1990). Aggregation in Discrete Choice Models: An Ilustration of Non-Linear Aggregation. "
  12. (1984). Aggregation in Economic Research. - From Individual to Macro Relations. doi
  13. (1992). Aggregation with Log-Linear Models. " doi
  14. (2002). Altenative Approaches to Evaluation in Empirical Microeconomics. " CEMMAP Working Paper n. 10/02. London: Centre for Microdata Methods and Practice,
  15. (1975). Alternative Aggregation Procedures.
  16. (1990). An Overview of the Demandfor Graduates.
  17. (2000). Analysis of Pay Trends. A Teaching Profession for the 21st Century. A Report for the McCrone Inquiry. Edinburgh: McCrone Commission.
  18. (1989). Choice At Sixteen. " doi
  19. (1953). Community Preference Fields. " doi
  20. (1973). Conditional Logit Analysis of Qualitative Choice Behaviour. " In P. Zarembka-(eds) Frontiers in Econometrics.
  21. (2000). Cross -Sectional Aggregation of Non-Linear Models. " doi
  22. (1985). Degrees for Jobs: Employers Expectations of Higher Education.
  23. (2001). Determinants of Individual Degree Performance. "
  24. (2002). Does Education Matter? Myths About Education and Economic Growth. doi
  25. (2000). Econometric Anal is (4hEdition).
  26. (1987). Education and Self-Selection. " doi
  27. (1997). Education, Religion, and First Destination of Recent School Leavers in Northern Ireland. " The Economic and Social Review 28(l):
  28. (1993). Empirical Approaches to the Problem of Aggregation over Individuals. "
  29. (1995). Estimates of the Economic Return to Schooling for the United Kingdom. "
  30. (1997). Fields of Study, College Selectivity, doi
  31. (1990). First Degree. - the Undergraduate Curriculum. London:
  32. (1992). From Higher Education to Employment (Vol.
  33. (1993). From Higher Education to Employment. doi
  34. (2000). Funding Universities to Meet National and International Challenges. Nottingham: The School of Economic Policy,
  35. (1996). Gender Differences in the Changing Labour Market: The Role of Legislation and Inequality in Changing the Wage Gap for Qualified Workers in the United Kingdom. " doi
  36. (1983). Generalized Econometric Models with Selectivity. " doi
  37. (1999). Graduate Earnings in Britain: A Matter of Degree? " doi
  38. (1999). Graduate Employability and Performance Indicators: First Destination and Beyond. " In
  39. (2000). Graduate Over-Education in the UK. Discussion Paper n. 8. London: Centre for the Economics of Education.
  40. (1996). Great Expectations. - the New Diversity of Graduate Skills andAspirations. Manchester: Careers Service Unit (CSU).
  41. (1976). Guidelines for Aggregate Travel Predictions Using Disaggregate Choice Models.
  42. (1982). Higher Education and Employment Markets in France. " doi
  43. (1993). Higher Education and Employment: The Case of Humanities and Social Sciences, a Synthesis of Countries and Expert Contributions. "
  44. (1987). Hiring Procedures in the Firm: Their Economic Determinants and Outcomes. " NBER Working paper n. doi
  45. (1993). Human Capital. - A Theoretical and Empirical Analysis, with Special Reference to Education. Chicago and London: doi
  46. (2001). Implementing Propensity Score Matching Estimation with STATA. "
  47. Indicators of Employment. Report
  48. (1995). Institutional Investors, Unstable Financial Markets and Monetary Policy. " doi
  49. (1971). Internal Labour Markets and Manpower Analysis. doi
  50. (2001). Is a Broader Curriculum Better? " doi
  51. (1984). Job Preferences, doi
  52. (2002). Just Like Daddy: the Occupational Choice of UK Graduates. " Presented at the Royal Economic Society Annual Conference
  53. (1996). League Tables and their Limitations: Statistical Issues in Comparisons of Institutional Performance. " doi
  54. (1997). Mapping the Careers of Highly Qualified Workers.
  55. (1997). Modelling the Transition from School and the Demand for Training in the United Kingdom. " doi
  56. (1999). Moving On. - Graduate Careers Three Years After Graduation. -Short Report.
  57. (1989). Occupational Choice and Earnings Determination: the Role of Sample Selection and NonPecuniary Factors. ".
  58. (1999). Occupational Gender Segregation. Trends and Explanations. " The ()uarterly Review of Economic and Finance 39(0) (Special Issue
  59. (1999). Overeducation, Undereducation and the British Labour Market. " doi
  60. (1990). Performance Indicators in Higher Education. doi
  61. (2001). Physician Income Expectations and Specialty Choice. " NBER Working paper n. doi
  62. (1975). Potential Biases in Measuring Male-Female Discrimination. " doi
  63. (1988). Predicted Future Earnings and Choice of College Major. " doi
  64. (1974). Predictions from Binary Choice Models. " doi
  65. (1995). Problems with Instrumental Variables Estimation When the Correlation Between the Instruments and the Enclogeneous Explanatory Variable Is Weak. " doi
  66. (1986). Qualitative Choice Analysis.
  67. (2001). Rational Choice under Unequal Constraints: the ExamPle of Belgian Higher Education. " doi
  68. (2002). Social Class, Ability, doi
  69. (1991). Social Networks and Labor-Market Outcomes: Toward an Economic Analysis. "
  70. (1984). Specification Tests for the Multinomial Logit Model. " doi
  71. (1991). Staying On in Full Time Education: The Educational Participation Rate of 16 Year Olds. " doi
  72. (1981). Staying-on at School in England and Wales. " doi
  73. (1993). Students, Courses and Jobs. The Relationship between
  74. (2003). Subject of Degree and Gender Wage Differential: Evidence from the UK and Germany. " doi
  75. (2000). Testing for Quasi-Market Forces in Secondary Education. " doi
  76. (2002). The Business Cycle Puzzle: Empirical Evidence from the G7. " Mimeo,
  77. (1983). The Central Role of the Propensity Score in Observational Studies for Causal Effects. " doi
  78. (1992). The Early Careers of
  79. (1990). The Earnings of Economics Graduates. " doi
  80. (1999). The Economic Case for Reforming A Levels. " Centre for Economic Performance Discussion Paper n.
  81. (1996). The Economics of the Trade Union. Cambridge: doi
  82. (1995). The Effects of High School Curriculum on Education and Labour Market Income. " doi
  83. (1996). The Future of Higher Education. The Society for Research into
  84. (1997). the Gender Gap in Earnings. " Lournal o HumaLn Rets 265
  85. (2000). The IES Annual Graduate Review
  86. (2000). The Incidence and Effect of Overeducation in the Graduate Labour Market. " doi
  87. (1999). The Marginal and Average Return to Schooling in the UK. " doi
  88. (2001). The Returns to Education. - Evidence ftom the Labour Force Surveys. London: Department of Education and Skills.
  89. (1996). The Returns to Graduation. London: Department for Education and Employment.
  90. (2002). The Returns to Higher Education Teaching. Research Report for the Department of Education and Skills. London: Centre for the Economics of Higher Education.
  91. (2000). The Returns to the Quantity and Quality of Education: Evidence for Men in England and Wales. " doi
  92. (1982). The Use of Cross-Section Data to Characterize Macro Functions. " doi
  93. (1990). The Use of Performance Indicators in the Public Sector. "
  94. (1997). Theories of Occupational Segregation by Sex: An Overview. "
  95. (1991). There is No Aggregation Bias: Why Macro Logit Models Work. " Journal o omic Statistics 9(1): 1: 15 Altonji, doi
  96. (1975). Transferability of Disaggregate Mode Choice Models. " doi
  97. (1975). Travel Prediction with Models of Individual Choice Behaviour. doi
  98. (2003). TSMATCH2: STATA module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing. " htlp: //ideas. repec. o g/c/boc/bocode/s432001. hmi. Version 1.12.
  99. (2000). UK Economics and the Future Supply of Academic Economists. " doi
  100. (1973). Wage Discrimination: Reduced Form and Structural Estimates. " doi
  101. (1995). Welfare Estimation Using Aggregate and IndividualObservation Models: A Comparison Using Monte Carlo Techniques. " doi
  102. (2002). Why is There a Graduate Earnings Premium for Students from Independent Schools. " doi

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.