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<br><font size=2 face="sans-serif">Málstofa á vegum Hagfrćđideildar </font>
<br><font size=2 face="sans-serif">Underemployment and Migration </font>
<br><font size=2 face="sans-serif">Oddi, 3.hćđ, föstudaginn 2. des. kl.
14-15</font>
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<br><font size=2 face="sans-serif">Dr. Wright will present a paper which
examines empirically the interaction between over-education, under-employment
and migration behavior of graduates of UK Higher Education Institutions.
The main focus is the nature of national and international graduate migration
flows. </font>
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<br><font size=2 face="sans-serif">The analysis is carried out with a micro-level
data for six cohorts of graduates constructed by matching information from
two large scale surveys carried out by the Higher Education Statistical
Agency: (1) Students in Higher Education Institutions and (2) Destinations
of Leavers from Higher Education. Migration equations are estimated where
the probability of graduates is related to a set of observable characteristics.
The analysis suggests that migration is a selective process with graduates
with certain characteristics having considerably higher probabilities of
migrating both to other regions of the UK and abroad. More specifically,
those students who “do well” have a considerably higher probability of
migrating from the regions where they studied.</font>
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<br><font size=2 face="sans-serif">With this data it is also possible to
calculate the rates of employment in so-called “non-graduate” jobs. Non-graduate
jobs are those that do not require the skills obtained through higher education.
An extreme example of this type of under-employment would be individual
with a medical driving a taxi. Around one-third of undergraduate graduates,
who are employed six months after graduation, are working in non-graduate
jobs. However, the rate of employment in non-graduate jobs declines with
age and experience. 3˝ years after graduation, around 20% of undergraduate
graduates are still employed in non-graduate jobs. These estimates suggest
that under-employment is a serious problem in the UK. </font>
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<br><font size=2 face="sans-serif">A descriptive analysis indicates that
there is negative statistical association between being employed in a non-graduate
job and having migrated. Employment equations, that control for a variety
of factors thought to influence employment decisions, confirms the direction
of this association. In this empirical analysis, particular attention is
paid to the potential endogenous nature of migration decisions in employment
decisions through IV-estimation and by matching methods applied to quasi
experimental design generated by geography.</font>
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<br><font size=2 face="sans-serif">Robert E. Wright, PhD, is a Professor
of Economics in the Strathclyde Business School at the University of Strathclyde
in Scotland.</font>