College Degree Supply, Productivity Spillovers and Occupational Allocation of Graduates in Central European Countries

Anna Lovasz and Barbara Pertold-Gębicka

No 1103, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: Public funding drives much of the recent growth of college degree supply in Europe, but few indicators are available to assess its optimal level. In this paper, we investigate an indicator of college skills usage - the fraction of college graduates employed in "college" occupations. Gottschalk and Hansen (2003) propose to identify "college" occupations based on withinoccupation college wage premia; we build on their strategy to study the local-labor-market relationship between the share of college graduates in the population and the use of college skills. Empirical results based on worker-level data from NUTS-4 districts in the Czech Republic, Hungary and Slovakia suggest a positive relationship, thus supporting the presence of an endogenous influence of the number of skilled workers on the demand for them.

Keywords: education; labor demand; college degree supply; occupational allocation; productivity spillovers (search for similar items in EconPapers)
JEL-codes: I28 J24 (search for similar items in EconPapers)
Date: 2011-04
New Economics Papers: this item is included in nep-edu, nep-eur, nep-lab and nep-tra
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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