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

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