Do the labour market returns to university degrees differ between high and low achieving youth? Evidence from Australia

Abstract

In almost all developed countries there has been substantial growth in university education over the last half-century. This growth has raised concerns that the benefits of university education are declining and that university education is not appropriate for students who, without the expansion, would not have been admitted. For such students, vocational education or direct entry to the labour market may be more appropriate. The purpose of this study is to examine the effects of university and vocational qualifications, net of other influences on a variety of labour market outcomes for Australian youths up to age 25; and if the benefits of university degrees differ across the achievement co..