An examination of the relationship between competences and wages of higher education graduates: Evidence from Morocco
Abstract
To provide research insights in line with the Tuning project approach, we estimate the effects of competences on wages of higher education graduates with work experience. Using the conventional earnings regressions methods (Mincer equation) on data from a survey of graduates, we investigate the way in which the labour market reacts and rewards competences. The results show small significant evidence for an effect of competences on wages in our dataset; however, methodological and social skills display positive payoff returns. Our empirical findings also suggest that the labour market rewards less specialised competences, and unlikely methodological and social competences are deemed more necessary compared to cognitive skills (theoretical knowledge). Finally, wages tend to decrease for those who are female and working in the private sector. Overall, the findings of the study are highly related to the specification and structure of the Moroccan labour markets.
Published online: 30 November 2017
Downloads
References
Arum, Richard, and Yossi Shavit. “Secondary Vocational Education and the Transition from School to Work.” Sociology of Education 68, no. 3 (July 1995): 187–04. https://doi:10.2307/2112684.
Becker, Gary S. Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. 2ed ed. New York: National Bureau of Economic Research, 1964.
Busato, Vittorio V, Frans J Prins, Jan J Elshout, and Christiaan Hamaker. “Intellectual Ability, Learning Style, Personality, Achievement Motivation and Academic Success of Psychology Students in Higher Education.” Personality and Individual Differences 29, no. 6 (2000): 1057–68. https://doi:10.1016/S0191-8869(99)00253-6.
Bills, B. David. “Credentials, Signals, and Screens: Explaining the Relationship between Schooling and Job Assignment.” Review of Educational Research 73, no. 4 (2003): 441–69. https://www.jstor.org/stable/3515999?seq=1#page_scan_tab_contents.
Escrig-Tena, Ana Belen, and Juan Carlos Bou-Llusar. “A Model for Evaluating Organizational Competencies: An Application in the Context of a Quality Management Initiative.” Decision Sciences 36, no. 2 (May 2005): 221–57. https://doi:10.1111/j.1540-5414.2005.00072.x.
Freeman, B. Richard. The Overeducated American. New York, Academic Press, 1976. https://www.jstor.org/stable/30023104?seq=1#page_scan_tab_contents.
García-Aracil, Adela, and Rolf Van Velden. “Competencies for Young European Higher Education Graduates: Labor Market Mismatches and Their Payoffs.” Higher Education 55, no. 2 (2008): 219–39. https://doi:10.1007/s10734-006-9050-4.
García-suaza, Andrés Felipe, Juan Carlos Guataquí, and José Alberto. “Beyond the Mincer Equation: The Internal Rate of Return to Higher Education in Colombia.” Education Economics 22, no. 3 (2014): 328–44. https://doi:10.1080/09645292.2011.595579.
Green, Francis. Skills and Skilled Work: An Economic and Social Analysis. 1st ed. Oxford University Press, 2013.
_____. “The Value of Skills” (Department of Economics Discussion Paper, no. 9819, University of Kent, 1998): 0-35. http://hdl.handle.net/10419/105517.
Green, Francis, and Nicholas Tsitsianis. “Can the Changing Nature of Jobs Account for National Trends in Job Satisfaction?” British Journal of Industrial Relations 43, no. 3 (2005): 401–29.
Hanushek, Eric A., Guido Schwerdt, Simon Wiederhold, and Ludger Woessmann. “Returns to Skills around the World: Evidence from PIAAC.” European Economic Review 73 (January 2015): 103–30. https://doi:10.1016/j.euroecorev.2014.10.006.
Koshy, Paul, Richard Seymour, and Mike Dockery. “Are There Institutional Differences in the Earnings of Australian Higher Education Graduates?” Economic Analysis and Policy 51 (2016): 1–11. https://doi:10.1016/j.eap.2016.05.004.
Lee, Hanol, Jong-wha Lee, and Eunbi Song. “Effects of Educational Mistmatch on Wages in the Korean Labor Market.” East Asian Economic Association and John Wiley & Sons Australia 30, no. 4 (2016): 375–400.
Levels, M., R. van der Velden, and J. Allen. “Educational Mismatches and Skills: New Empirical Tests of Old Hypotheses.” Oxford Economic Papers 66, no. 4 (October 2014): 959–82. https://doi:10.1093/oep/gpu024.
Mincer, Jacob, and Solomon Polachek. “Family Investment in Human Capital: Earnings of Women.” Journal of Political Economy 82, no. 2 (1974): 76–110. https://doi.org/10.1086/260293.
Paul, Kellermann. “Acquired Competences and Job Requirements.” In Careers of University Graduates, edited by Springer, Dordrech, 115-130. U. Teichler, 2007. https://doi.org/10.1007/978-1-4020-5926-1_7.
OECD. OECD Skills Outlook 2013: First Results from the Survey of Adult Skills. OECD Publishing, 2013. http://dx.doi.org/10.1787/9789264204256-en.
Russell, W. Rumberger. “The Rising Incidence of Overeducation in the U.S. Labor Market.” Economics of Education Review 1, no. 3 (June 1981): 293–314. https://doi:10.1016/0272-7757(81)90001-7.
Rychen, Dominique Simone Salganik, Laura Hersh. Key Competencies for a Successful Life and a Well-Functioning Society. Hogrefe & Huber, 2003. https://books.google.co.ma/books?id=GK63AAAAIAAJ.
Sianesi, Barbara, and John Van Reenen. “The Returns to Education: Macroeconomics.” Journal of Economic Surveys 17, no. 2 (April 2003): 157–200. https://doi:10.1111/1467-6419.00192.
Velden, Rolf Van Der, and Ineke Bijlsma. “College Wage Premiums and Skills: A Cross-Country Analysis.” Oxford Review of Economic Policy 32, no. 4 (2016): 497–513. https://doi:10.1093/oxrep/grw027.
Authors are required to sign and submit a copyright transfer agreement after acceptance but before publication of their manuscript. To that effect, they receive, from the Managing Editor of Tuning Journal for Higher Education, a standard copyright assignment form designed along the following lines:
1. Authorship:
The author who signs the copyright transfer agreement must be the sole creator of the work or legally acting on behalf of and with the full agreement of all the contributing authors.
2. Copyright and Code of conduct:
a) Authors warrant that their work is original; has not been previously copyrighted or published in any form; is not under consideration for publication elsewhere; its submission and publication do not violate TJHE Ethical Guidelines for Publication and any codes (of conduct), privacy and confidentiality agreements, laws or any rights of any third party; and no publication payment by the Publisher (University of Deusto) is required.
b) Authors are solely liable for the consequences that may arise from third parties’ complaints about the submitted manuscript and its publication in Tuning Journal for Higher Education (TJHE).
c) Authors grant to the Publisher the worldwide, sub-licensable, and royalty-free right to exploit the work in all forms and media of expression, now known or developed in the future, for educational and scholarly purposes.
d) Authors retain the right to archive, present, display, distribute, develop, and republish their work (publisher's version) to progress their scientific career provided the original publication source (Tuning Journal) is acknowledged properly and in a way that does not suggest the Publisher endorses them or their use of the wortk.
e) Authors warrant that no permissions or licences of any kind will be granted that might infringe the rights granted to the Publisher.
3. Users:
Tuning Journal for Higher Education is an Open Access publication. Its content is free for full and immediate access, reading, search, download, distribution and reuse in any medium or format only for non-commercial purposes and in compliance with any applicable copyright legislation, without prior permission from the Publisher or the author(s). In any case, proper acknowledgement of the original publication source must be made and any changes to the original work must be indicated clearly and in a manner that does not suggest the author’s and or Publisher’s endorsement whatsoever. Any other use of its content in any medium or format, now known or developed in the future, requires prior written permission of the copyright holder.