The career services premium: how university job-search boosts graduate earnings

Purpose This article assesses the impact of university career services on graduates' earnings. Design/methodology/approach Using data from a Catalan graduate follow-up survey for the period 2008–2023, we compare the earnings of graduates who secured their first job after graduation through a university-provided careers service with those who entered employment through alternative routes. Drawing on the richness of the dataset, we employ an instrumental-variable approach to address bias arising from the non-random sorting of graduates into job entry routes. Findings We find an earnings premium for those who accessed their first job through university career services. These services reduce search frictions and improve job-worker matching, leading to higher-quality initial placements. These effects are particularly strong for women and graduates with limited work experience. Research limitations/implications This study is based on a repeated cross-sectional survey and cannot assess the medium- and long-term returns of university career services. Practical implications Our results show that the return on investment of career services is higher for women and for those with limited working experience. Social implications The article contributes robust evidence that suggests investing in employability practices is an effective education policy for ameliorating labour market inequalities. Originality/value To our knowledge, this is, to date, the only estimate of the causal impact of university career services on graduate earnings.