The Relationship between Expansion in Higher Education and the Labour Market in Norway

Abstract

During the last seven years considerable changes have taken place in higher education in Norway. Important structural reforms and a strong increase in the student population are the most distinctive features. The same period has also been very turbulent in the Norwegian economy; unemployment has reached a much higher level than Norway has experienced since the Second World War. These changes constitute the background to this article. Norwegian developments seem to be more or less in line with international trends: demand for higher education is increasing in most countries, and there is greater political concern to expand access to higher education (Frackman & Griesback, 1987; Benn & Fieldhouse, 1993; OECD, 1994). Since the mid-1980s there has been stronger political interest in higher education, especially concerning quality and efficiency. Efforts have been made to improve the flow of students through the system and hence reduce the average duration of studies-this is important both to improve the cost-effectiveness of higher education and to increase capacity for the intake of new students. The purpose of this article is to discuss the relationship between educational expansion and the labour market. After describing quantitative growth in higher education and some overall trends in the Norwegian economy, we will argue that the policy of expanding the capacity of higher education is being used as a buffer against youth unemployment. Even if the policy of expansion may be effective in repressing acute unemployment problems, it is not clear whether it is in accordance with the long-term needs of the economy. Survey data on the transition from higher education to work will be presented to throw light on changes in the labour market for graduates. Finally, we will discuss whether a worsening labour market for graduates is due to changes in the demand structure for educated manpower, or whether it is a result of the expansion of higher education.