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Málstofa á vegum Hagfrćđideildar </font><font size=3> </font><font size=2 face="sans-serif"><br>
Underemployment and Migration </font><font size=3> </font><font size=2 face="sans-serif"><br>
Oddi, 3.hćđ, föstudaginn 2. des. kl. 14-15</font><font size=3> <br>
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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><font size=3><br>
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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><font size=3> <br>
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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><font size=3><br>
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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><font size=3>
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Robert E. Wright, PhD, is a Professor of Economics in the Strathclyde Business
School at the University of Strathclyde in Scotland.</font>