From Backpacks to Briefcases: A Study on Talent Allocation of Recent Graduates from 1990 to 2010

Abstract

The way in which individuals make occupational choices has an enormous impact on social and economic development. Current literature highlights talent allocation to “innovative” or “productive” industries as a possible means of accelerating growth. The goal of this thesis is to begin to connect macroeconomic theory of talent allocation with individuals’ vocational choices. More specifically, I focus on the career placement by industry and by job function of recent university graduates from the National Association of Colleges and Employers (NACE) survey between 1990-2010. My findings suggest that there may exist a steady distribution of students by job function, while the quantity of offers and salary by industry varies with economic cycles. This may imply that improvements to talent allocation should concentrate on shifting “for whom” an individual chooses to work rather than “what” the work is. Finally, I provide several areas for future exploration to improve relative pecuniary and non-pecuniary incentives for productive industries.