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Article
The shrinking earnings premium for university graduates in Hong Kong : the effect of quantity or quality?
Contemporary Economic Policy
  • Hon Kwong LUI, Lingnan University, Hong Kong
  • Wing SUEN, University of Hong Kong
Document Type
Journal article
Publication Date
4-1-2005
Disciplines
Abstract

In 1989, the Hong Kong government embarked on a program to increase the provision of first-year first-degree places. The expansion of tertiary education represents a large and exogenous increase in the supply of university graduates to the territory. This article measures the labor market effects of the expansion program by studying the changes in earnings premium for university graduates. Two alternative hypotheses-crowding and quality effects-are identified to explain why the earnings premium shrank. The results support the view that the declining quality of university graduates is the prime candidate for the declining earnings premium.

DOI
10.1093/cep/byi018
E-ISSN
14657287
Publisher Statement

Copyright © Western Economic Association International 2005

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Citation Information
Lui, H.-K., & Suen, W. (2005). The shrinking earnings premium for university graduates in Hong Kong: The effect of quantity or quality? Contemporary Economic Policy, 23(2), 242-254. doi: 10.1093/cep/byi018