Research projects

Project CEMAPRE internal

TitleDeterminants of Higher Education Graduates economic outcomes The case of ISEG´s Higher Education Graduates
ParticipantsGraça Leão Fernandes (Principal Investigator)
SummaryThere is a widespread belief that Higher Education (HE) improves graduates’ economic outcomes,
employability, and wages. As a result, graduate employability has become a key political priority,
with universities expected to develop relevant skills. However, the link between HE and labour
market success is increasingly contested, as many graduates face underemployment and low wages.
Efforts by universities to align education with employer demands and expand career services have not
fully matched labour market realities. Skill mismatch is common, with many graduates working in
roles that underutilize their qualifications, contributing to job insecurity.
Much research overlooks broader social and economic factors shaping employability and wages, leading
to a limited understanding. The graduate labour market is congested, with an oversupply of graduates
causing overqualification, intensified competition, and reinforced inequalities. Barriers such as
class, gender, and ethnicity continue to affect access to quality employment and limit social
mobility.
In Portugal, the number of HE graduates has grown since the 2016/17 economic recovery, but labour
market outcomes reflect these broader trends. The expansion of traditional graduate jobs has not
kept pace with the rise in graduates, leading to longer job search periods, uncertain transitions,
reduced wage advantages over non-graduates, and greater wage inequality.
Delays in securing a first job can hinder skill development and lead to a loss of human capital,
representing a cost for both individuals and society. Lower wages and rising inequality also weaken
graduates’ bargaining power.
URLhttps://eera-ecer.de/conferences/ecer-2026-tampere