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Who Gets a Better Job? Comparing the Employability of Public and Private University Graduates in Spain

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Abstract

The aim of this study is to analyse the differences in employability among Spanish graduates from public or private universities. Private and public universities do not usually have the same profile. In a scenario in which private universities are becoming increasingly important, with mainly high-income students, a greater employability of their graduates could change the higher education system and reduce the role of tertiary education in social mobility. To assess whether the outcomes of the two university models are different, we use Probit models and Inverse Probability Weighting Regression Adjustment to analyse the probability of being employed, suffering job mismatch, or having higher wages with micro-data from a representative sample of Spanish graduates. We do not find large differences in employability between graduates of public and private universities. The small differences we see concern, generally, degrees in Social Sciences and are related to job quality. There is also evidence that the socioeconomic background of the graduate has different effects on students from public and private universities. Graduates from private universities of more disadvantaged backgrounds have a certain advantage in terms of their employability.

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Data Availability

The datasets analysed during the current study are available at the Spanish National Statistics Institute web page: https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736176991&menu=resultados&idp=1254735976597#!tabs-1254736195339

Notes

  1. In Spain, students must have passed a general university entrance examination to be admitted to a bachelor’s degree programme. Admission to public universities is determined by the grade obtained in this exam. Admission to private universities requires passing this exam, but unlike public universities, degrees in private universities do not have minimum entry grades.

  2. According to the Ministry of Universities (Ministerio de Universidades, 2023) there are 6 public and 11 private universities in Madrid, 7 public and 5 private universities in Catalonia and 10 public and only 1 private university in Andalusia.

  3. The microdata are available on the National Institute of Statistics website: https://www.ine.es/dyngs/INEbase/en/operacion.htm?c=Estadistica_C&cid=1254736176991&menu=resultados&idp=1254735976597#!tabs-1254736195339.

  4. See Sloczynski and Wooldridge (2018) for further details.

  5. A detailed definition of the variables used in the analysis as well as their mean and standard deviation are provided in "Appendix”.

  6. All models used to obtain the results in Table 4 are available upon request.

  7. The same variables considered in the probit models have been included in the treatment and outcome equations. However, for identification, regional variables have only been included in the treatment equation.

  8. The unemployment rate in the health sector is systematically lower than the overall unemployment rate. In 2014, the unemployment rate stood at 22.5% whilst it was no higher than 5.8% in healthcare. These figures were 14.1% against 4.7% in 2019.

  9. The supply of Health studies at public universities meets less than 30% of the demand.

  10. Year after year degrees in Health present the highest cut-off grades in entrance exams.

  11. In Social Sciences, Early Childhood Education, Primary Education, Business Administration and Management, and Law are considered, which in 2019 represent 13.55%, 23.58%, 13.77% and 11.24% of the graduates in the field for private universities, and 8.45%, 10.74%, 13.69% and 12% for public universities. In Engineering, Computer Science, Architecture and Civil Engineering are considered, which represent 23.93%, 16.61% and 11.36% of the graduates of the field in the private sector, and 14.71%, 4.30% and 8.31% in the public sector. In Health Sciences, Psychology, Nursing and Physiotherapy are considered, which represent 16.82%, 30.92% and 10% of the graduates of the field for private universities, and 13.36%, 26.73% and 7.79% for public universities. Arts and Humanities Main-Private includes Design, Humanities, and Spanish Language, which in 2019 represent 58.7% of the graduates in Arts and Humanities for private universities and 13.96% for public universities. Science Main-Private includes in 2019, Biology, Biochemistry, Biotechnology, Environmental Sciences, and Marine Science, which represent 87.37% of the graduates in Science from private universities and 49% from public universities.

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Funding

Authors M.Arrazola and J. de Hevia has received financial support from Comunidad de Madrid, Spain (Grant: H2019/HUM-5761) and European Social Fund.

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Correspondence to María Arrazola.

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Appendix: Variables and Descriptive Statistics

Appendix: Variables and Descriptive Statistics

Variable name

Description

SLIU-2014

SLIU-2019

Mean

Standard deviation

Mean

Standard deviation

Employability measures Dummy = 1 if the graduate

Employed

Has a job

0.747

0.435

0.857

0.350

Vertical mismatch

Suffers vertical mismatch

0.254

0.435

0.213

0.410

Horizontal mismatch

Suffers horizontal mismatch

0.239

0.426

0.262

0.440

Wage+1500

Earns more than1500€ net per month

n.a.

0.519

0.500

High quintiles

Has a high contribution basis (fourth/fifth quintile).

0.401

0.490

0.400

0.490

Variables related to the university where the graduate studied. Dummy = 1 if the individual graduated from

Public

A public university

0.860

0.347

0.852

0.355

Andalusia

A university of the region of Andalusia

0.117

0.320

0.109

0.312

Aragon

A university of the region of Aragon

0.042

0.201

0.045

0.208

Asturias

A university of the region of Asturias

0.034

0.182

0.034

0.180

Balearic Islands

A Balearic Islands university

0.021

0.144

0.023

0.149

Canary Islands

A Canary Islands university

0.036

0.186

0.039

0.195

Cantabria

A university of the region of Cantabria

0.019

0.137

0.019

0.137

Catalonia

A Catalan university

0.111

0.315

0.110

0.312

Castilla y Leon

A university of the region of Castilla y Leon

0.077

0.111

0.088

0.283

Castilla-La Mancha

A university of the region of Castilla-La Mancha

0.030

0.169

0.034

0.182

Extremadura

A university of the region of Extremadura

0.035

0.183

0.031

0.173

Galicia

A university of the region of Galicia

0.063

0.242

0.055

0.228

La Rioja

A university of the region of La Rioja

  

0.019

0.138

Madrid

A university of the region of Madrid (used as reference in our models)

0.150

0.358

0.152

0.359

Murcia

A university of the region of Murcia

0.049

0.216

0.044

0.206

Navarra

A university of the region of Navarra

0.028

0.165

0.025

0.155

Basque Country

A Basque Country university

0.058

0.233

0.051

0.221

Valencia

A university of the region of Valencia

0.084

0.277

0.086

0.281

UNED

The National Distance-learning university

0.032

0.177

0.034

0.182

Individual's characteristics. Dummy = 1 if the individual

Spanish

Is Spanish

0.992

0.083

0.989

0.104

Disability

Has a degree of disability equal or greater than 33%

0.009

0.097

0.012

0.110

Male

Is a male

0.403

0.491

0.430

0.495

Under 30

Is under the age of 30

0.590

0.492

0.496

0.500

Age 30-34

Is between 30 and 34 years of age

0.251

0.433

0.279

0.448

Age more than 35

Is older than 35 years of age

0.159

0.365

0.225

0.417

Variables related to the field of study. Dummy =1 if the individual has a

Arts-Humanities

Bachelor’s degree in arts or humanities (used as reference variable in our models)

0.106

0.308

0.100

0.301

Science

Bachelor’s degree in sciences

0.097

0.443

0.088

0.282

Social Sciences

Bachelor’s degree in social sciences

0.443

0.497

0.458

0.498

Engineering

Bachelor’s degree in engineering or architecture

0.224

0.417

0.212

0.409

Health

Bachelor’s degree in health sciences

0.130

0.336

0.142

0.349

Variables related to Graduate’s skills. Dummy =1 if the graduate has a

ICT proficiency

High level of ICT proficiency

0.158

0.364

0.209

0.406

Foreign language

High fluency in a foreign language

0.433

0.495

0.468

0.499

Having other studies. Dummy = 1 if the individual has

Other university studies

Other university studies

0.493

0.500

  

Other studies - degree

Another bachelor’s degree

n.a.

0.234

0.424

Master's degree

A master's degree

0.353

0.477

0.475

0.499

PhD studies

PhD studies

n.a.

0.015

0.123

Variables related to student mobility. Dummy =1 if the individual

Mobility-national studies

Has completed part of his studies at another Spanish university.

0.095

0.293

0.097

0.296

Mobility-international studies

Has completed part of his studies outside Spain.

0.171

0.376

0.199

0.399

Change- residence

Has moved to find employment

0.253

0.435

0.302

0.459

Other variables. Dummy =1 if the individual

Excellence scholarship

Has been awarded an excellence and/or collaboration scholarship during his studies

0.063

0.242

0.073

0.260

Internship

Has done an internship during his studies

0.745

0.436

0.735

0.442

Part-time

Has a part-time contract

0.176

0.381

0.119

0.324

  1. Source Author’s own calculations based on EILU microdata

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Arrazola, M., de Hevia, J., Perrote, I. et al. Who Gets a Better Job? Comparing the Employability of Public and Private University Graduates in Spain. High Educ Policy (2023). https://doi.org/10.1057/s41307-023-00325-0

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