The Opportunity Costs of STEM Degrees and the Unmet Needs of the Low-Skilled: Two Labour Market Problems Explained

CEPS Policy Briefs No. 295, June 26, 2013

8 Pages Posted: 2 Jul 2013

See all articles by Ilaria Maselli

Ilaria Maselli

Centre for European Policy Studies (CEPS)

Miroslav Beblavý

Centre for European Policy Studies (CEPS)

Date Written: June 26, 2013

Abstract

There is general consensus that to achieve employment growth, especially for vulnerable groups, it is not sufficient to simply kick-start economic growth: skills among both the high- and low-skilled population need to be improved. In particular, we argue that if the lack of graduates in science, technology, engineering and mathematics (STEM) is a true problem, it needs to be tackled via incentives and not simply via public campaigns: students are not enrolling in ‘hard-science’ subjects because the opportunity cost is very high.

As far as the low-skilled population is concerned, we encourage EU and national policy-makers to invest in a more comprehensive view of this phenomenon. The ‘low-skilled’ label can hide a number of different scenarios: labour market detachment, migration, and obsolete skills that are the result of macroeconomic structural changes. For this reason lifelong learning is necessary to keep up with new technology and to shield workers from the risk of skills obsolescence and detachment from the labour market.

Keywords: labour market, employment growth, migration, lifelong learning

Suggested Citation

Maselli, Ilaria and Beblavý, Miroslav, The Opportunity Costs of STEM Degrees and the Unmet Needs of the Low-Skilled: Two Labour Market Problems Explained (June 26, 2013). CEPS Policy Briefs No. 295, June 26, 2013, Available at SSRN: https://ssrn.com/abstract=2287861

Ilaria Maselli (Contact Author)

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

Miroslav Beblavý

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres
Brussels, 1000
Belgium

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