Revisiting the concept of employability through economic theories: Contributions, limitations and policy implications

Abstract Graduate employability is an economic concept that strives to link higher education and employment. Economics of education and labour market theories contribute to its definition and provide arguments on its drivers and barriers. However, available studies have focused on human capital theory, which addresses the resources with which graduates should be endowed but overlooks the insights from other theories. This paper not only presents a more comprehensive picture of employability based on economic literature, but also confronts economic‐grounded arguments with academic research from other social sciences. It examines screening, signalling, and matching arguments that unveil concepts and factors affecting employability. On the other hand, it adds social and personal constraints that are neglected in the economic literature, notably social and cultural capital that impact access to and the benefits of higher education. The notion of contingent employability is suggested to bring all these factors together.