A New Study on Higher Education’s Response to Labor Market Needs
A new study titled “Skills, Majors, and Jobs: Does Higher Education Respond?” conducted by the W.E. Upjohn Institute for Employment Research, sheds light on how colleges and universities are adapting to changing labor market demands. Led by Dr. Kevin Stange, co-director of the University of Michigan’s Education Policy Initiative, this study is part of a larger multiyear research project.
Quantifying Human Capital Responses
The research focuses on undergraduate programs at four-year institutions across the United States that have often been criticized. Its aim is to determine whether these institutions are equipping students with the necessary skills and knowledge demanded by the labor market. The study quantifies the magnitude and nature of human capital responses to shifts in labor market demand.
Responsiveness of Institutions
According to Dr. Stange, the study reveals that colleges and universities are indeed responsive to labor market demands. For instance, a 1% increase in job demand in a specific field resulted in a 1.3% increase in course enrollment and degrees awarded in that field. Contrary to popular belief, the study emphasizes that the majority of students do not attend highly selective private institutions or research-focused graduate programs.
Dr. Stange highlights that moderately selective or open access institutions, which enroll a larger number of students, tend to be more responsive. He emphasizes the importance of institutional flexibility in adapting curricula to meet the evolving needs of the labor market.
Supply-Side Constraints and Demand-Side Preferences
The study concludes that both supply-side constraints and demand-side preferences play a significant role in shaping human capital responses to skill demand. Policy efforts aimed at aligning educational investment with labor demand may face challenges if they solely target one side of the market.
Dr. Stange explains, “There are two sides to this issue: the demand from students and the decisions made by institutions. These factors interact in crucial ways to ensure that investments in education respond effectively to changes in the economy. Institutions require some autonomy to be responsive.”
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 4: Quality Education | 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational, and tertiary education, including university | – Increase in course-taking and degrees in fields with increased job demand |
| SDG 8: Decent Work and Economic Growth | 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value-added and labor-intensive sectors | – Increase in demand for jobs in specific fields |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 4: Quality Education
The article discusses how colleges and universities are responding to changing labor market needs by providing students with timely, in-demand skills through their training and education programs. This aligns with SDG 4, which aims to ensure inclusive and equitable quality education for all.
SDG 8: Decent Work and Economic Growth
The article also highlights the importance of aligning educational investment with labor demand to achieve economic growth. This relates to SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational, and tertiary education, including university
The article emphasizes the need for colleges and universities to provide students with the skills demanded by the labor market. This aligns with Target 4.3, which aims to ensure equal access to quality tertiary education that prepares individuals for the workforce.
Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value-added and labor-intensive sectors
The article discusses how institutions need to be responsive to changes in the labor market and make changes to their curriculums accordingly. This aligns with Target 8.2, which focuses on achieving higher levels of economic productivity through diversification, technological upgrading, and innovation.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article mentions an indicator that can be used to measure progress towards Target 4.3: an increase in course-taking and degrees in fields with increased job demand. This indicates that colleges and universities are providing students with the skills needed in the labor market.
The article also mentions an indicator that can be used to measure progress towards Target 8.2: an increase in demand for jobs in specific fields. This indicates that there is a focus on high-value-added and labor-intensive sectors.
Source: diverseeducation.com
