The Rewards of Human Capital Competences for Young European Higher Education Graduates
Authors: Garcia-Aracil, Adela; Mora, Jose-Gines; Vila, Luis E.
Source: Tertiary Education and Management, Volume 10, Number 4, December 2004 , pp. 287-305(19)
Abstract:The labour market rewards for a number of required human capital competences are analysed using a sample of young European higher education graduates. Factor analysis is applied to classify competences by jobs into eight orthogonal groups, namely participative, methodological, specialised, organisational, applying rules, physical, generic and socio-emotional competences. Estimates for the total rewards for competences are obtained through conventional wage regression, whereas estimates of the total rewards are derived in terms of job satisfaction through ordered logit regression. Explanatory variables include personal characteristics, job attributes, occupational titles, fields of study, type of higher education institution and country dummies. Results on wage rewards show that jobs with higher requirements of participativeand methodological competencesare best paid; conversely, jobs with higher requirements of organisational, applying-rulesand physical competencesare worse paid. Results on total rewards suggest that jobs with higher requirements of competences increase graduates’ satisfaction, the only exception being applying-rules competences.
Document Type: Research Article
Affiliations: Centre for Higher Education Management (CHEM), Technical University of Valencia, Rectorate, Camino de Vera, Valencia, 46022, Spain
Publication date: December 1, 2004