The regional economic impact of more graduates in the labour market: a “micro-to-macro” analysis for Scotland

Hermannsson, K. , Lisenkova, K., Lecca, P., McGregor, P. and Swales, K. (2014) The regional economic impact of more graduates in the labour market: a “micro-to-macro” analysis for Scotland. Environment and Planning A, 46(2), pp. 471-487. (doi: 10.1068/a45326)

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This paper explores the system-wide impact of graduates on the regional economy. Graduates enjoy a significant wage premium, often interpreted as reflecting their greater productivity relative to non-graduates. If this is so there is a clear and direct supply-side impact of HEI activities on regional economies. We use an HEI-disaggregated computable general equilibrium model of Scotland to estimate the impact of the growing proportion of graduates in the Scottish labour force that is implied by the current participation rate and demographic change, taking the graduate wage premium in Scotland as an indicator of productivity enhancement. While the detailed results vary with alternative assumptions about the extent to which wage premia reflect productivity, they do suggest that the long-term supply-side impacts of HEIs provide a significant boost to regional GDP. Furthermore, the results suggest that the supply-side impacts of HEIs are likely to be more important than the expenditure impacts that are the focus of most HEI impact studies.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Hermannsson, Professor Kristinn
Authors: Hermannsson, K., Lisenkova, K., Lecca, P., McGregor, P., and Swales, K.
Subjects:L Education > L Education (General)
College/School:College of Social Sciences > School of Education
College of Social Sciences > School of Education > Educational Leadership & Policy
Journal Name:Environment and Planning A
ISSN (Online):1472-3409

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Project CodeAward NoProject NamePrincipal InvestigatorFunder's NameFunder RefLead Dept
464781The overall impact of HEIs on regional economies in the UK.Economic & Social Research Council (ESRC)RES-171-25-0032BUS - ECONOMICS