Returns to Postgraduate Education in Portugal: Holding on to a Higher Ground?

52 Pages Posted: 10 Apr 2017

See all articles by André Almeida

André Almeida

University of British Columbia (UBC) - Centre for Policy Studies in Higher Education and Training (CHET)

Hugo Figueiredo

University of Manchester - European Work and Employment Research Centre (EWERC)

Joao Cerejeira

University of Minho - Economic Policies Research Unit (NIPE); University of Minho - Department of Economics

Miguel Portela

University of Minho; IZA Institute of Labor Economics

Carla Sa

Vrije Universiteit Amsterdam, School of Business and Economics; University of Minho

Pedro Teixeira

Universidade do Porto - Faculdade de Economia (FEP)

Abstract

In this paper we use a large official employer-employee dataset, which includes almost the whole universe of business firms, to document and decompose the rising graduates postgraduates' wage differentials in Portugal. Using a non-parametric matching exercise, we pay particular attention to differences in the assignment of these two groups of workers across occupations and tasks. This allows us to disentangle different sources of postgraduates' relative earnings and look at the creation of postgraduate jobs. We further look, however, at displacement and deskilling effects due to relative demand inertia as possible sources of such evolution of the relative earnings. Our results show that both displacement and deskilling effects, particularly of graduates with only a first-degree, appear to be at least as important as direct productivity effects in explaining postgraduates premiums. We also conclude that the relative importance of the former has been steadily increasing overtime and that, on the contrary, the net creation of high-paying, postgraduate-only jobs has been relatively modest. This suggests that postgraduate degrees have largely worked as a way of holding on to a higher ground in the labour market.

Keywords: postgraduate, wage differentials, inequality, polarization, skills

JEL Classification: C21, J24, J31

Suggested Citation

Almeida, André and Figueiredo, Hugo and Cerejeira Silva, Joao and Portela, Miguel and Sa, Carla and Teixeira, Pedro, Returns to Postgraduate Education in Portugal: Holding on to a Higher Ground?. IZA Discussion Paper No. 10676, Available at SSRN: https://ssrn.com/abstract=2949112 or http://dx.doi.org/10.2139/ssrn.2949112

André Almeida (Contact Author)

University of British Columbia (UBC) - Centre for Policy Studies in Higher Education and Training (CHET)

Rua 1º Dezembro
399, 4450-227 Matosinhos
Matosinhos
Canada

Hugo Figueiredo

University of Manchester - European Work and Employment Research Centre (EWERC) ( email )

Oxford Road
Manchester M60 1QD, N/A M13 9PL
United Kingdom

Joao Cerejeira Silva

University of Minho - Economic Policies Research Unit (NIPE) ( email )

Campus de Gualtar
Braga, 4710-057
Portugal

University of Minho - Department of Economics ( email )

Braga 4710-057
Portugal

Miguel Portela

University of Minho ( email )

Braga, 4700
Portugal

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Carla Sa

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands
+31(0)20 551 3538 (Phone)
+31(0)20 551 3555 (Fax)

University of Minho

Braga, 4700
Portugal

Pedro Teixeira

Universidade do Porto - Faculdade de Economia (FEP) ( email )

Rua Roberto Frias
s/n
Porto, 4200-464
Portugal

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
64
Abstract Views
476
rank
474,831
PlumX Metrics