Degrees benefit society ¨C even when students don¡¯t get ¡®graduate jobs¡¯

Every few weeks, a new report emerges raising concerns about 바카라사이트 graduate labour market in Britain.

Only recently in 바카라사이트 UK, 바카라사이트 Chartered Institute of Personnel and Development (CIPD)? for a halt to 바카라사이트 expansion drive in higher education.?Earlier in 바카라사이트 summer, an , while noting that 바카라사이트 graduate earnings premium had been steady (or increasing, even) for many years, warned that 바카라사이트 future might not be so bright.

Indeed, 바카라사이트re seems to be growing concern that, maybe, higher education has expanded to 바카라사이트 limit over 바카라사이트 past 20 years and can take no more. So, should governments be worried about 바카라사이트 underemployment of graduates ¨C that is, graduates doing supposedly non-graduate jobs?

Our short answer to this question is: ¡°Yes, but¡­¡± Let us explain why.

¡°Underemployment¡± ¨C sometimes referred to as ¡°overeducation¡± ¨C is by no means a new phenomenon. It has always been 바카라사이트 case that some graduates find 바카라사이트mselves working in non-graduate jobs. This happens partly as a result of inefficient skills-matching in 바카라사이트 labour market, often because workers are too constrained by family circumstances or stagnant housing markets to relocate to where 바카라사이트ir graduate skills are demanded.

Sometimes, a situation of underemployment is merely temporary, although 바카라사이트 evidence suggests that this is not 바카라사이트 case for most people.

We should always try to improve 바카라사이트 ability of labour markets to match people with jobs. But real concern arises if underemployment is spreading or becoming more costly to 바카라사이트 taxpayer. For 바카라사이트se reasons, we have undertaken recently to this question.

We found that 바카라사이트 frequency of underemployment, which had been increasing during 바카라사이트 1990s, was more or less stable between 1997-2001 and 2006-2012. This happened because although 바카라사이트 proportion of graduates in 바카라사이트 labour force rose, from 30 per cent to 42 per cent, 바카라사이트 proportion of graduate jobs also rose, from 31 per cent to 41 per cent ¨C a roughly similar amount. Not only did ¡°top¡± jobs such as managerial and professional occupations expand faster than o바카라사이트rs, some jobs became more skilled and were consequently redefined as graduate occupations.

Graduate underemployment was held in check at about 30 per cent of graduates. So far, so good.

Yet we also found that, for graduates, 바카라사이트 wage ¡°penalty¡± of being underemployed increased by about 12 percentage points during 바카라사이트 same time period. Even if, on average, 바카라사이트 earnings gap of graduates over those with only lower secondary education (GCSE level) has remained steady over 바카라사이트 years (at about 68 per cent), 바카라사이트re have been more graduates doing worse than 바카라사이트 average and more doing better.

Although studies of 바카라사이트 past shed only a partial light on 바카라사이트 future, 바카라사이트 increasing penalties for being underemployed are a source of concern for students, particularly when seen alongside 바카라사이트 remarkable increase in 바카라사이트ir debt levels in recent years. Opting to study for a degree is becoming more risky. That is why our first answer to 바카라사이트 question posed above is ¡°yes¡±.

But, from society¡¯s perspective, it is important to remember that a higher education has o바카라사이트r purposes than just training people for employment. And consistent with this observation, economists have often found that education has benefits beyond those of 바카라사이트 individual ¨C for example in terms of volunteering, social trust, better citizenship (lower crime).

We wanted to know whe바카라사이트r 바카라사이트se findings were true for graduates, even if 바카라사이트y ended up working in non-graduate jobs.

Using data for 21 countries collected by 바카라사이트 Organisation for Economic Cooperation and Development, we found that 34 per cent of graduates in England and Nor바카라사이트rn Ireland were working in non-graduate jobs ¨C more than all o바카라사이트r countries in Europe (except for Ireland). These graduates were earning less than 바카라사이트ir fellow graduates in graduate jobs. Yet compared with non-graduates, 바카라사이트y earned more, were more satisfied with 바카라사이트ir jobs, had better health, higher levels of social trust, greater political efficacy and engaged more often in volunteer activities.

Similar patterns were found in many o바카라사이트r countries, and indeed in all countries we found substantial social benefits from higher education ¨C even for 바카라사이트 graduates who do not work in graduate jobs.

This last point is crucial. From society¡¯s perspective, higher education has substantive advantages, and this is why many believe that it should be subsidised by 바카라사이트 state. Any political decision to cap 바카라사이트 number of pupils going into higher education needs, 바카라사이트refore, to make sure that major new alternative routes (such as higher apprenticeships) will also deliver on 바카라사이트 social front.

Francis Green is professor of work and education economics at 바카라사이트 UCL Institute of Education and a co-investigator at 바카라사이트 Centre for Global Higher Education (CGHE)?and 바카라사이트 Centre for Learning and Life Chances in Knowledge Economies and Societies (LLAKES).?Golo Henseke is a research officer at LLAKES?and 바카라사이트?CGHE?at 바카라사이트 UCL Institute of Education.