Education and Employment: Evidence from Selected OECD Countries

Abstract

The objective of the paper is to investigate the relationship between education and employment level in 27 member countries of OECD over the period 1998-2019. To achieve this, the paper first analyses the effect of the number of graduates from upper secondary, post-secondary and tertiary education programmes. Additionally, the paper constructs an education index which covers graduates from upper secondary, post-secondary and tertiary education programmes. After calculating distribution of graduates using the standard deviation method, the paper employs two-step system GMM developed by Arellano and Bover (1995) and Blundell and Bond (1998). The findings show that graduates from upper secondary, post-secondary and tertiary education, as well as the distribution of graduates, have a positive effect on employment, respectively. It is expected that policymakers consider the effect of graduates from different education levels on employment to design substantial education and employment strategies.