The economic returns to field of study and competencies among higher education graduates in Ireland

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper looks at the economic returns to different fields of study in Ireland in 2004 and also the value placed on various job-related competencies, accumulated on completion of higher education, in the Irish labour market. In examining these issues the paper seeks to control for potential selection influences by ensuring through quantile regression that comparisons are made within sections of the wage distribution where ability differences are likely to be minimal. The impact that education-job mismatch, both education-level and field, has on earnings is also taken into consideration. The results derived indicate that, relative to the base case, there are higher returns to Medicine & Veterinary, Education, Engineering & Architecture, Science and Computers & IT. The quantile regression analysis reveals that the OLS estimates are not particularly affected by unobserved heterogeneity bias. Furthermore, this approach indicates that field specific returns diminish the more able the graduate. Small but significant returns were found for some of the competencies analysed, in particular technical skills. Terms of use: Documents inJEL Classification: I20, J24, J30, J31.

Field-of-study mismatch and overqualification: labour market correlates and their wage penalty

“…These findings show that mismatched workers are more likely to receive lower wages (Wolbers 2003;Robst 2007a;Kelly et al 2010;Nordin et al 2010;Quintini 2011b;OECD 2014), experience lower levels of job satisfaction and are more likely to be actively looking for a job while in the job (Wolbers 2003;Béduwé and Giret 2011). These findings are consistent with assignment theory (Sattinger 1993) as the wage penalty is stronger for individuals who report that their field-of-study is at a greater distance from the occupational group (Robst 2008;Nordin et al 2010).…”

“…Wolbers 2003;Quintini 2011b). Even fewer studies explore the correlates of field-of-study mismatch in conjunction with qualification mismatch (see, for example, Kelly et al 2010, Béduwé and Giret 2011and Kim et al 2012 for noteworthy exceptions). The importance of accounting for qualification mismatch in analyses of the relationship between field-of-study mismatch and pay (or any other individual correlate thereof) is both statistical and conceptual.…”

“…Robst 2007aRobst , 2007bRobst , 2008Kelly et al 2010;Nordin et al 2010; or rely on relatively old data (e.g. Wolbers 2003;Quintini 2011b).…”

Effectively Maintained Inequality in Educational Transitions in the Republic of Ireland

“…As in other institutional contexts, increases in rates of participation at upper secondary level and higher education in Ireland have been accompanied by the development of an education system in which new programs, differentiated curricula, and new institutions have emerged. As participation in education rises, it increasingly matters not only how much education people accumulate but also the type of education that is received for later labor market outcomes (Byrne, 2008;McCoy, & Smyth, 2011;Layte, O'Connell, Fahey, & McCoy, 2005;Kelly, O'Connell, & Smyth, 2010). While it is well established that the structure and organization of the education system affects youth transitions in the Irish context (Byrne, 2008(Byrne, , 2009Byrne, McCoy, & Watson, 2008;Layte et al, 2005;McCoy, Smyth, Watson, & Darmody, 2014;McCoy & Smyth, 2011), less attention has been paid in the Irish context to the study of qualitative distinctions at the same level of education over time, at both secondary and higher education, and how young people from different social-class backgrounds fare.…”

The Economic Impact of Higher Education Institutions in Ireland: Evidence from Disaggregated Input Output Tables.

“…Private and public benefits are clearly identified from attainment of higher education -see Kelly, O'Connell, and Smyth (2010), Long (2010), and Oppedisano (2014) as examples of studies that focus on different aspects of this measurement issue. In this paper we concentrate on a high---level macroeconomic impact.…”