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1 Studies for the Learning Society

1 2012

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Does a university degree pay off in the estonian labour market?

100%

Espenberg K. , Themas A. , Masso J. , Eamets R.

tom 2

nr 2-3

46-60

While graduates of real sciences are considered crucial to the development of the knowledge-based economy, most European countries are still characterised by the low proportion of young people choosing to study natural and life sciences. The current research is motivated by a desire to compare the labour market performance of graduates of various disciplines to see whether there is any evidence of an over-supply of social science graduates. In this study we use the data from two waves of an Estonian survey of university alumni to analyse the labour market positions of young people with different educational backgrounds, during and after graduation, through both an economic boom and a deep recession. The results show that many students work during their studies, mostly for economic reasons. There are some signs of over-qualification and a mismatch between subjects studied and current jobs. There is a wage-premium observable between social science and real science graduates only at the master/doctoral level, not at bachelor level. This is partly explained by examining the sectors and companies where social and real sciences graduates are employed; however, a part of the gap remains unexplained.