Private sector postgraduate training and graduate overeducation

This paper reports the results of an evaluation examining the effectiveness of a private sector graduate training initiative in reducing the incidence of overeducation among its participants. It was found that the initiative reduced job‐search frictions within the graduate labour market through the effective screening of potential placements/employers. However, a statistically significant impact vis‐à‐vis participants’ labour market outcomes was derived only from the placement element of the programme, with little evidence of any direct gains deriving from the training component. The results appear to suggest that the effective role of such initiatives may lie in their expertise as specialist recruitment agencies as opposed to training providers. However, there was evidence to support the view that real benefits from training are achievable provided more careful consideration is given to the appropriateness of the subject area of the conversion programme.