Labour market success of non-completer higher education students and higher education degree-holders

Márton Csillag () and Júlia Varga ()
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Márton Csillag: Budapest Institute for Policy Analysis; HUN-REN Centre for Economic and Regional Studies
Júlia Varga: HUN-REN Centre for Economic and Regional Studies

No 2505, KRTK-KTI WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: This study uses a large, individual-level, linked administrative panel dataset (Admin3) to examine the early labour market success of Hungarian higher education graduates who graduated between 2011 and 214, compared to their peers who graduated with incomplete degrees (only 'absolutorium' and no degree). We focus on the first 36 months of the early labour market careers of the two groups. The analyses provide further evidence for the few studies on the economic value of incomplete diplomas in a European context. The results confirm the role of the diploma signal early in the labour market career. Those without a degree take longer to find a full-time job and earn less than those with a degree at the beginning of their career, and in their first job, they are working at a somewhat lower skill level job than degree holders. There is no difference in the probability of occupational mobility between the two groups, with the likelihood of mobility within a given occupation being slightly lower for those with a degree. The results on wage and skill level changes due to occupational mobility are consistent with the U-shaped theory of occupational mobility.

Keywords: higher education; labour market; drop-outs; human capital; signalling; sheepskin effect (search for similar items in EconPapers)
JEL-codes: I23 I26 J01 J24 J62 (search for similar items in EconPapers)
Date: 2025-02
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