The shrinking earnings premium for university graduates in Hong Kong : the effect of quantity or quality?
Document Type
Journal article
Source Publication
Contemporary Economic Policy
Publication Date
4-1-2005
Volume
23
Issue
2
First Page
242
Last Page
254
Abstract
In 1989, the Hong Kong government embarked on a program to increase the provision of first-year first-degree places. The expansion of tertiary education represents a large and exogenous increase in the supply of university graduates to the territory. This article measures the labor market effects of the expansion program by studying the changes in earnings premium for university graduates. Two alternative hypotheses-crowding and quality effects-are identified to explain why the earnings premium shrank. The results support the view that the declining quality of university graduates is the prime candidate for the declining earnings premium.
DOI
10.1093/cep/byi018
Print ISSN
10743529
E-ISSN
14657287
Publisher Statement
Copyright © Western Economic Association International 2005
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Lui, H.-K., & Suen, W. (2005). The shrinking earnings premium for university graduates in Hong Kong: The effect of quantity or quality? Contemporary Economic Policy, 23(2), 242-254. doi: 10.1093/cep/byi018