Date Added: Apr 2010
Public funding drives much of the recent growth of college degree supply in Europe, but few indicators are available to assess its optimal level. In this paper, the author investigates an indicator of college skills usage - the fraction of college graduates employed in "College" occupations. Gottschalk and Hansen (2003) propose to identify "College" occupations based on within-occupation college wage premia; the author builds on their strategy to study the local-labor-market relationship between the share of college graduates in the population and the use of college skills. Empirical results based on worker-level data from Czech NUTS-4 districts suggest a positive relationship, thus supporting the presence of an endogenous influence of the number of skilled workers on the demand for them.