The boom in university graduates and the risk of underemployment
Universidad del Pacífico, Peru

Gustavo Yamada
2015 IZA World of Labor  
The boom in university graduates and the risk of underemployment. IZA World of Labor 2015: 165 doi: 10.15185/izawol.165 | Gustavo Yamada © | July 2015 | wol.iza.org 1 1 the boom in university graduates and the risk of underemployment Better information on university quality may reduce underemployment and overeducation in developing countries Pros Regulating the quantity and quality of university graduates might reduce the probability of overeducation and professional underemployment. Preventing
more » ... loyment. Preventing the unbridled growth of public and private universities could avoid waste of resources in low-return investments arising from information asymmetry about university quality. Regulating university quantity and quality would provide students with information on university quality and employability of graduates needed for better decisions on long-term investments in human capital. Cons Limiting growth in the number of university students may constrain improvements in the human capital stock of the economy. Limiting growth in the number of university students would reduce the economic and productivity growth potential of the economy. Intervening in the higher education market could impede the upward economic and social mobility of younger members of the population. Regulations affecting the quantity and quality of university graduates might be difficult to enforce in countries with weak institutional capacity. KEY FINdINGs ELEvatoR PItCH the full reference list for this article is available from the IZa World of Labor website (http://wol.iza.org/articles/boom-in-university-graduates-and-risk-of-underemployment).
doi:10.15185/izawol.165 fatcat:5edgobqcobci7oco256fe4bhly