Working on heterogeneous human capital*

At the beginning of the nineteen-eighties, the Dutch economy was in a poor state.Successive oil crises had hit the industrial sector particularly hard. This promptedgovernment to set up an authoritative committee, led by former Shell presidentWagner. The committee was asked to advise on the creation of a new industrialélan and revitalisation of the economy. One of the committee''s recommendationswas a better match between education and occupational practice, in order tobenefit sufficiently from the contribution of education and training to economicdevelopment.1 In the wake of these recommendations, the ministry of Educationdecided to commission the economics faculty of Maastricht University with a longtermresearch assignment, the primary aim of which was to make the labour marketmore transparent for education decisions.labour economics ;

Forecasting the labour market by occupation and education: Some key issues

In this paper, we focus on two key characteristics of ROA’s forecasting approach of the labour market by occupation and education. These concern the use of the gap approach, and the substitution of education programmes within occupations. We show that the gap between supply and demand constitutes a useful and informative concept, which can be justifiably used as long as too little is known about the adjustment process in the labour market. Then we discuss the structure of the substitution process, mainly focusing on substitution as a result of the initially expected gaps between supply and demand. We distinguish between active substitution, resulting from supply-demand mismatches for the education programme concerned, and passive substitution, which is due to spillover effects from supply-demand mismatches for other education programmes. Passive substitution between education programmes is included in the forecasts when the final gaps between supply and demand are calculated. Recent ROA forecasts are used to illustrate the meaning of the various substitution processes for expected labour demand and the gaps between supply and demand. We find that omitting substitution demand from the forecasting model results in future labour market prospects that are generally too pessimistic for the higher educated.education, training and the labour market;

Student time allocation, the learning environment and the acquisition of competencies

This paper investigates the significance of the higher education learning environment and the student’s time allocation over study related activities for the acquisition of generic and discipline-specific competencies. We discern four learning environments according to the emphasis placed on activating learning methods and the emphasis placed on the teacher as main source of information. Time used is measured for attention of formal education, self-study, extra-curricula activities and paid work. Using a unique data set on European higher education graduates, providing detailed information, we investigate the competencies acquisitions process by stochastic frontier production function methods. The results suggest that activating learning methods are effective in both, the acquisition of generic competencies and the acquisition of discipline-specific competencies. Moreover, the results show that discipline-specific competencies are acquired by attending formal education, by self-study and by paid work, as long as there is a strong link between the work and the study. Generic competencies are acquired by self-study and paid work that is related to the study.labour market entry and occupational careers;

The effects of higher education programme characteristics on allocation and performance of the graduates: a European view

This paper provides new insight into the role of higher educational programmes in allocation and performance during the transition from education to the labour market. Using a unique data set on the labour market situation of graduates in nine European countries, we investigate the significance of five characteristics of the higher education programmes: (1) The academic versus discipline-specific character of the competencies generated by the curriculum; (2) the level of standardization of the generated competencies; (3) the extent by which working and learning activities are combined, (4) the level of internationalization of the educational programme and (5) the extent to which a programme provides exclusive entrance to particular occupations.First, our results reveal in particular the importance of the competence orientation of the education programme. Allocation of graduates to occupations takes place in a manner that yields a situation wherein the competence orientation of the education is in congruence with the competence orientation of the occupation. Second, we show that the standardization of the education programme with respect to the competencies students acquire plays an important role in both informing the employer, and reducing the adjustment costs. By that, it allows for a higher remuneration of the graduates.education, training and the labour market;

Discipline-specific and academic competencies of the higher educated: their value in the labour market and their acquisition in education

This paper summarizes the outlines of three empirical studies that we have carried out on actual labour market value of the various types of competencies acquired in higher education and how these competencies may be taught most effectively. The focus is on the discipline-specific competencies and academic competencies. In all three studies, use was made of the European CHEERS dataset. The main results with regard to the labour market value of the various competencies are that a high level of discipline-specific competencies provides graduates with a comparative advantage in jobs within their own professional domain, where they also earn more than outside this domain. Graduates who possess a high level of academic competencies, have a comparative advantage outside their own professional domain, where they may initially earn less than in their own domain. As they are more inclined to take part in training activities and are able to obtain the required competencies for a supervisory position more quickly, their salaries rise more quickly with time. With regard to the organization of the education process, we found that activating learning methods contribute effectively to both the acquisition of academic competencies and the acquisition of discipline-specific competencies. By combining these methods with a more prominent position for knowledge transfer by teachers, the acquired level of discipline-specific competencies can be increased without affecting the acquisition of academic competencies.education, training and the labour market;