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The role of post-school education and training institutions in predicting labour market outcomes


Date posted:

2022/11/01

Publication year:

2017

Corporate author/s:

Department of Higher Education and Training (DHET); Human Sciences Research Council (HSRC); Labour Market Intelligence Partnership (LMIP)

Person/s author/s:

Khumani, Mumbi E; Bhorat, Haroon

Output-type:

research report

Format:

pdf

In this paper, we examine the role played by higher education institutions in two higher education labour market outcomes, namely the probability of employment and earnings. We use the first three 2 Blacks refer to Africans, Coloureds and Indians/Asians. 2 The role of post-school education and training institutions in predicting labour market outcomes waves of the National Income Dynamic Study (NIDS) to describe the interaction between the labour market outcomes and institution of higher education attended. Using a Heckman two-stage model, we find that attending a university increases an individual's chances of employment by 7-10 percentage points relative to attending a college, and the premium to attending a university is twofold. This is an indication that, in addition to a possible perception of higher productivity, university diplomas give a positive signal to employers who, in return, offer higher wages to university graduates than to college graduates.

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