Report No: AUS0000633 Graduate Employability of Affiliated Colleges New Evidence from Bangladesh Graduate Tracking Survey on Affiliated Colleges of Bangladesh National University © 2019 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2019. Graduate Employability of Affiliated Colleges - New Evidence from Bangladesh: Graduate Tracking Survey on Affiliated Colleges of Bangladesh National University. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Graphics and layout design: Mohammad Inamul Shahriar Print: Progressive Printer Pvt. Ltd. Report No: AUS0000633 Graduate Tracking Survey on Affiliated Colleges of Bangladesh National University GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH Shiro Nakata, Afra Rahman Chowdhury, Yoko Nagashima, Md. Mokhlesur Rahman, Tashmina Rahman and Muhammad Asahabur Rahman March 31, 2019 Education Global Practice South Asia Region ACKNOWLEDGEMENT This study has been conducted as part of the analytical work in support of the College Education Development Project (CEDP) in Bangladesh. The team was supported significantly by the National University, Bangladesh and University Grants Commission, Bangladesh in designing the survey and collecting the data. SRG Bangladesh Limited conducted the fieldwork for data collection. The team appreciates those institutions, students, and employers who willingly participated in the survey. The study was financed by the Korea-World Bank Partnership Facility supported by the Government of Republic of Korea. This report was prepared the team comprised of Shiro Nakata (Senior Education Economist), Yoko Nagashima (Senior Education Specialist), Md. Mokhlesur Rahman (Senior Operations Specialist), Afra Rahman Chowdhury (Consultant), Tashmina Rahman (education specialist), Muhammad Asahabur Rahman (Consultant) under the overall supervision of Cristian Aedo (Practice Manager). The report benefited from useful inputs and feedbacks from the World Bank colleagues, including Saurav Dev Bhatta (Senior Economist) and Tekabe Ayalew Belay (Program Leader). The author particularly thanks Denis Nikolaev (Education Specialist), Nina Arnhold (Senior Education Specialist) and Sangeeta Goyal (Senior Economist) for their insightful review and thoughtful comments as peer reviewers. 2 ABBREVIATIONS AND ACRONYMS BANBEIS Bangladesh Bureau of Education Information and Statistics CAPI Computer-Assisted Personal Interview CEDP College Education Development Project DSHE Directorate of Secondary and Higher Education GPA Grade Point Average GPI Gender Parity Index HEQEP Higher Education Quality Enhancement Project HSC Higher Secondary Certificate ICT Information and Communication Technology LFP Labor Force Participation NAEM National Academy of Educational Management NEET Not Engaged in Employment and/or Training NTRCA Nongovernment Teachers Registration and Certification Authority NU National University OECD Organisation for Economic Co-operation and Development SMEs Small and Medium Enterprises SSC Secondary School Certificate GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 3 CONTENTS 1. INTRODUCTION 9 1.1 Labor Market and Education Attainment in Bangladesh 9 1.2 Affiliated College Systems in South Asia and Bangladesh 11 1.3 Key Issues in Affiliated College System in Bangladesh 14 Objectives of Study 15 1.4 Methodology 16 1.5 2. WHO ARE THE AFFILIATED COLLEGE STUDENTS IN BANGLADESH? 19 Background of College Students 19 2.1 3. HOW ARE THE COLLEGE GRADUATES PERFORMING IN JOB MARKET? 25 Employment outcomes 25 3.1 Wage Employment 29 3.2 Unemployment 38 3.3 Further education and training 40 3.4 3.5 Expectation and perceptions about jobs and job market 41 4. HOW DO GRADUATES AND EMPLOYERS SEE THE COLLEGE EDUCATION? 45 4.1 Graduates’ Feedback on Quality and Relevance of College Education 45 4.2 Employers’ Feedback on Quality and Relevance of College education 47 5. SUMMARY OF KEY FINDINGS AND POLICY IMPLICATIONS 53 Key Findings 53 5.1 Recommendations 54 5.2 REFERENCES 58 APPENDIX 1: INSTITUTIONAL CAPACITY OF COLLEGES 59 Teaching and learning facilities 59 Capacity of teaching staff 60 Job placement services provided by colleges and keeping track of graduates 60 Challenges faced by colleges 61 LIST OF TABLES Table 1: Rate of Returns to Additional Year of Education at Different Levels in Bangladesh 11 Table 2: Examples of Affiliating Universities in South Asia Region 11 Table 3: Basic Statistics on Colleges, Teachers, and Enrollment in 2017 12 Table 4: Students in Final Years of Programs in 2017 13 Table 5: Number of Colleges and Student Enrollment by Ownership Type of Institutions 13 Table 6: Factors Associated with Labor Market Outcomes of College Graduates 28 Table 7: Industries where Graduates Are Employed 30 Table 8: Average Current and Starting Salary among Wage Employed by Industry (BDT) 32 Table 9: Average Current Gross Salary by Occupation, Contract Type, and Current Location (BDT) 33 Table 10: Determinants of Salary for Employed Graduates, OLS Estimation 35 LIST OF FIGURES Figure 1: Share of Education Attainment among People of Age 15 or Above in Bangladesh 9 Figure 2: Share of High-Skilled Occupations among Employed Population, by Education Attainment Levels 10 Figure 3: Age at College Graduation among Graduates from Honors Course, by Gender 20 Figure 4: Education and Occupation of Parents of College Graduates 20 Figure 5: Proportion of NU Graduates by the SSC National Examination Result 21 Figure 6: Composition of Subject Streams of NU Graduates 21 Figure 7: Original and Current Residential Locations of NU Graduates, by Gender 22 Figure 8: Overview of Employment Status of Graduates 26 Figure 9: Employment Outcomes by Gender 26 Figure 10: Employment Outcomes by Degree 27 Figure 11: Occupations of Currently Employed Graduates 30 Figure 12: Type and Size of Employers of Graduates 31 Figure 13: Employment Contract Types of the Employed Graduates by Gender 32 Figure 14: Distribution of Current Monthly Salaries, by Gender 33 Figure 15: Method of Finding Employment by Currently Employed Graduates by Gender 36 Figure 16: Number of Months it Took to Find the First Job for Currently Employed Graduates 36 Figure 17: Share of Employed NU Graduates Satisfied with Aspects of their Current Employment 37 Figure 18: Important Reasons behind Choosing Current Job 38 Figure 19: Unemployment Rate by Various Categories—Gender, Location, Broad Area of College Degree 39 Figure 20: Length of Unemployment Period among Unemployed NU Graduates 39 Figure 21: Job Search Strategies Followed by Unemployed NU Graduates 39 Figure 22: Motivation Behind Further Education and Training 40 Figure 23: Preferred Occupation by Graduates Currently Unemployed or Pursuing Further Education 41 Figure 24: Perception about Labor Market of NU Graduates Who Are in the Labor Force 42 Figure 25: Graduates’ Overall Assessments about Learning and Skills Acquisition in College 45 Figure 26: Graduates’ Assessments about Relevance of Education at Colleges 46 Figure 27: Graduates’ Assessments about Quality of Education Services at Colleges 46 Figure 28: Graduates’ Assessments about Learning Experience in College 47 Figure 29: Employers of College Graduates Surveyed, by Sector 48 Figure 30: Importance of Various Factors behind Hiring the College Graduate 48 Figure 31: Employers Perception about Graduates’ Level of Strength on Various Skills 49 Figure 32: Employers View on Skill Areas Colleges Should Educate and Train Students More 49 Figure 33: Subject Areas in Demand of Employers 50 Figure 1.1: Share of Teachers Received Training by NAEM and NU during the Last 12 Months 60 Figure 1.2: Ranking of Challenges Faced by Colleges 61 8 1 INTRODUCTION 1.1. LABOR MARKET AND EDUCATION ATTAINMENT IN BANGLADESH 1. In Bangladesh, though tertiary education holders are still a small minority, the economy has been blessed with a large supply of young and increasingly more educated population. The economy has been growing consistently at around the rate of 6–7 percent annually over the past decade in Bangladesh. The country has an estimated size of 62.5 million persons in the labor force as of 2016, and 2 million new workers are estimated to join the labor force every year. Its relatively young population contributes significantly to the growth of the labor force and overall economic growth. Moreover, the share of labor force participation (LFP) of people of age 15 or above increased from 59 percent in 2003 to 61 percent in 2016. Particularly notable improvement was made in female LFP. The rate increased significantly from 28 percent in 2003 to 37 percent in 2016. Education attainment levels of the population have witnessed considerable improvement over the decade. Tertiary education and higher secondary education leavers increased to account for 11.3 percent of the working age population in 2016, a jump from 7.4 percent just six years earlier. Yet, people with tertiary education continue to be a small minority in the labor force, accounting for only 5 percent of working age population. 6.0% 5.3% 3.7% 3.7% 2010 2016 Higher Secondary Tertiary Figure 1: Share of Education Attainment among People of Age 15 or Above in Bangladesh Source: Quarterly Labour Force Survey 2015/16. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 9 43% 22% 24% 20% 21% 18% 11% 14% 6% 8% 8% 4% 1% 3% 2% Secondary Higher Secondary Tertiary Managers Professionals Technicians Service and Sales Workers Craft Workers Figure 2: Share of High-Skilled Occupations among Employed Population, by Education Attainment Levels Source: Quarterly Labour Force Survey 2015/16. 2. Workers with tertiary education degrees are filling percent of them are formally employed. Higher secondary high-skilled occupations in the job market such graduates trail behind by a large margin at 33 percent. as professionals and managers. Tertiary education The share goes down for secondary school graduates qualification holders still account for only a fraction of to only 17 percent. The benefit of having a tertiary the labor force in Bangladesh. As of 2016, only 5.3 percent education degree is even more pronounced for females, of employed people have tertiary education degrees or who are generally more prone to informal employment higher, according to the Labour Force Survey. Given the arrangements. Women with tertiary education are just rapid technological changes in recent times, with both as likely as men with the same education level to be global and local job market constantly changing, the formally employed. Meantime, female workers with higher labor demands for more educated and highly skilled secondary education are only half as likely as their male workers have been growing. Tertiary education graduates peers, and female workers with only secondary education appear to be in high demand in the labor market to fill are less than a fifth as likely as their male counterparts, to high-skilled positions such as managers, professionals, have formal employment. and technicians. Nearly 70 percent of employed tertiary qualification holders work in those high-qualified 4. It should be cautioned that manpower supply from occupations (see Figure 2). This share is markedly higher tertiary education may not be fully aligned with the even when compared to higher secondary qualification economic growth scenario of the country. The Labour holders who themselves are also among the better Force Survey shows that most (around 80 percent) of educated in the country (they account for just 6 percent the tertiary education holders are found to be working of the employed population). It is evident that holding in the service sector, while only 15 percent are working tertiary education degrees has indeed been a first step for in the industry sector. The service and industry sectors becoming professional knowledge workers in Bangladesh. are estimated to account for around 54 percent and 27 percent of the gross domestic product in Bangladesh 3. Furthermore, gaining tertiary education in 2016, respectively. Service sector encompasses qualification is strongly associated with formal government activities, communication, education, sector employment, especially for females. Informal finance, commerce, and so on, while the industry sector employment1 is the norm in Bangladesh. As much as 86 covers key economic activities of Bangladesh such as percent of all jobs are classified as informal employment, manufacturing and construction. It should be highlighted according to the labor force survey. In this context, there is that the industry sector has been the major driving force a strong correlation between education attainment levels of economic growth in Bangladesh in recent decades. The and the likelihood of having formal employment. Formal industry sector has consistently been growing faster than employment is by far more common among employed the service sector (for example, the industry sector grew people with tertiary education attainment. Forty-seven 11 percent while the service sector grew only 6 percent in 1 Informal employment refers to those jobs that generally do not enjoy basic social and legal protection or employment benefits. Nearly all employment in the informal sector are informal employment. Informal employment can also be found in the formal sector. 10 2016). This seeming misalignment may warrant a word from the economy for highly skilled workers that tertiary- of caution. Tertiary education may have been failing to level education and training could supply. As the country’s adequately supply skilled manpower to this growth sector economy is increasingly modernized and globalized, it of the economy and instead oversupplying it to the less would not be surprising to see that trend continue into the vibrant service sector where job opportunities and labor foreseeable future. This clearly offers a strong rationale productivities may be growing only modestly. for more public and private investment in improving and expanding tertiary education in Bangladesh. 5. The returns to tertiary education have been consistently high over time in Bangladesh. The private rate of returns to each additional year of education in Table 1: Share of High-Skilled Occupations among different levels for years 2005, 2010, and 2016 are provided Employed Population, by Education Attainment Levels in Table 1. While the rate of returns for additional years in primary and secondary levels are decreasing over time, Level 2005 2010 2016 the rate of returns to tertiary level of education has been Primary (Grades 1–5) (%) 7.5 5.5 4.0 consistently over 20 percent between 2005 and 2016.2 Secondary (Grades 6–12) (%) 6.8 5.4 4.6 Against the backdrop of a growing supply of workers with Tertiary (Bachelor’s degree and 20.5 22.8 20.5 tertiary education qualifications, this sustained level above) (%) of return to tertiary education or wage premium would Source: Authors’ calculations based on Household Income and probably indicate that there are equally growing demands Expenditure Survey data. 1.2. LABOR MARKET AND EDUCATION ATTAINMENT IN BANGLADESH 6. The model of affiliated colleges, adopted originally universities. In India, for instance, there are more than 268 from the British system, has developed into massive affiliating universities across the country as of 2015–2016, networks of teaching-oriented colleges in the South collectively affiliating around 39,000 colleges.3 This Asia region to meet the surging demand for higher affiliation system has allowed the countries to establish education. Affiliating colleges to a degree-awarding a large number of institutions that offer tertiary-level university has been practiced by different universities in education relatively swiftly to keep pace with the growing the United Kingdom; however, it is unique in South Asian numbers of secondary school graduates. As a result, a countries (that is, Bangladesh, India, Nepal, and Pakistan) large share (more than 45 percent) of higher education that the model was expanded to attach hundreds, in students in the South Asian countries are studying in some cases more than a thousand, of affiliated colleges those affiliated colleges.4 Due to their sheer volume, the to a single affiliating university. For instance, Tribhuvan affiliated college systems are playing a significant part in University in Nepal affiliates around 1,053 colleges as shaping the standard of higher education, and skills and of 2015. In each country, there are multiple affiliating knowledge of high-skilled labor force in this region. Table 2: Examples of Affiliating Universities in South Asia Region National Tribhuvan Mumbai University of the University (NU) University University Punjab Country Bangladesh Nepal India Pakistan Number of colleges affiliated 2,300 1,053 749 614 Source: Respective university websites, as of June 2018. 2 Given that there are very few observations of individuals who have taken technical education in this nationally representative sample, their returns to education are not calculated. 3 According to the All India Survey of Higher Education 2015–2016 published by the Ministry of Human Resource Development. Out of 268 affiliating universities, 17 universities have 500 or more affiliated colleges, and one has more than 1,000 colleges. 4 According to the overall analysis of the issue by Lee (2011). Overall, the affiliated college sectors of these countries are severely under-researched and under-documented. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 11 7. In the systems of affiliated colleges, the control of million students and accounts for 68 percent of all the affiliating universities typically extends across the higher education enrollment. Like the affiliated college entire spectrum of academic policies and programs of systems in other countries, the NU plays a dominant affiliated colleges. Affiliated public and private colleges role in academic affairs of its affiliated colleges. Degrees operate in a formal agreement with an affiliating university offered by the affiliated colleges are issued under the with regard to the entire affairs related to academic NU’s name. Meantime, the NU has little responsibility policies and programs. The affiliating universities often over nonacademic affairs of affiliated colleges including conduct entrance examinations, manage registration of general governance, teacher recruitment, and financial students, define standard curriculum for all subjects, carry oversight. out student assessments, and issue certificates for both public- and private-affiliated colleges. Upon completion 9. The NU-affiliated colleges offer three- or four-year of the program, the student typically receives a certificate bachelor programs and master’s program and enroll from the affiliating university, not from the affiliated nearly equal numbers of male and female students. college where he/she attended the academic program. In The NU-affiliated colleges are categorized into three principle, colleges are not allowed to run nonaccredited groups according to the level of programs they can offer: programs. As such, affiliating universities typically exert (a) degree pass colleges which offer only up to three-year full control over academic programs of affiliated colleges. bachelor’s degree courses, (b) degree honors colleges Governance and financial management structures may which offer up to four-year honors bachelor’s degree differ depending on the types of institutions (for example, courses, and (c) master’s colleges which offer master’s public, private, community-based, and so on) and overall degree courses.5 After completion of the bachelor’s tertiary education management system of the country. degree, students become eligible to enroll in master’s programs for one-year course for honors degree or two- 8. In Bangladesh, the NU is the main affiliating year course as degree pass graduates. PhD courses are university, a major supplier of higher education in offered only at the NU main campus, targeting college the country and one of the largest universities in teachers. In terms of ownership, the large majority (85 the world. After completion of the Higher Secondary percent) of these NU-affiliated colleges are privately Certificate (HSC), students who continue higher education owned nongovernment colleges, while the rest are in Bangladesh have two educational paths to pursue publicly owned. In terms of size of institutions, degree higher education: universities or affiliated colleges. pass colleges tend to be smaller and more scattered At present, the majority of higher education students geographically across less urbanized areas, whereas are enrolled in the colleges affiliated to the NU. As of honors and master’s colleges are generally larger and 2017, according to the annual statistics of the Ministry tend to be located in urban areas and metropolitan cities. of Education (MoE), published by Bangladesh Bureau Among all students, nearly half, 47 percent, are enrolled of Education Information and Statistics (BANBEIS), in three-year degree pass courses, 44 percent in four- 1,862 colleges are affiliated to the NU. Each year the year honors courses, and 8 percent in master’s courses. number of colleges keeps growing. Student enrollment There is a total of around 78,000 teachers. Many of these across the NU-affiliated colleges are more than 1.8 teachers also teach higher secondary courses, which are Table 3: Basic Statistics on Colleges, Teachers, and Enrollment in 2017 Student Enrollment by Programs College Type No. of Institutions No. of Teachers Pass Honors Master’s Total Degree Pass 1,126 39,471 342,339 8,715 0 351,054 Honor 568 26,006 285,257 241,720 383 527,360 Master’s 168 12,459 230,522 548,536 149,887 928,945 Total 1,862 77,936 858,118 798,971 150,270 1,807,359 % Female 24 48 45 44 46 Source: BANBEIS, Education Statistics 2017. 5 Honors colleges also offer pass degree courses, and master’s colleges also offer pass/honor degree courses. 12 also part of many of the affiliated colleges. It is noteworthy 11. In the NU-affiliated college system, government that there is a near gender parity in overall student and nongovernment college institutions coexist enrollment. Of all the college students, 46 percent are and account for roughly equal numbers of student female (student enrollment in universities is more skewed enrollments. Government colleges are heavily subsidized toward males—only 33 percent are female students as of by the government, while nongovernment colleges 2017). operate with government subsidies for covering part of their teacher payroll. All students, regardless of their 10. Overall, the NU-affiliated colleges produce around colleges’ ownership, are expected to pay various fees half a million graduates annually. Every year, the including tuition fees and examination fees. However, affiliated college system of the NU makes a massive nongovernment colleges charge significantly more for contribution in building up the human capital in the their tuition fees and other student fees. In general, labor force of the country. Though the statistics vary and government colleges are larger institutions that enroll fluctuate across the years, as of 2017, as many as 546,000 far greater numbers of students per institution and tend students were studying in the final years of academic to be located in urbanized zones. For these reasons, it programs with the NU (see Table 4). Though not all of is often the case that government colleges are a more them would immediately graduate and join the workforce, favored school choice if students can afford to commute they undoubtedly account for a significant part of the new to colleges in urban areas. workforce in the country (around 2 million workers newly enter the labor market each year in Bangladesh). 12. In addition to the NU-affiliated colleges, there are other tertiary colleges, enrolling over 320,000 Table 4: Students in Final Years of Programs in 2017 students in total, which are affiliated to other general and professional universities. Those are outside Program Type Total the scope of this study. This study focuses on colleges Degree Pass 282,874 affiliated to the NU as they account for the vast majority Honors 152,234 of affiliated college students. Unless otherwise specifically Master’s 111,082 noted, this paper refers to these NU-affiliated colleges just as ‘colleges’ or ‘affiliated college’ for the benefit of Total 546,190 simplicity. Source: BANBEIS, Education Statistics 2017. Table 5: Number of Colleges and Student Enrollment by Ownership Type of Institutions Student Enrollment by Programs College Type Government Colleges Nongovernment Colleges Government Nongovernment Degree Pass 68 1,058 37,060 309,453 Honors 108 460 158,841 368,519 Master’s 107 61 798,369 130576 Total 283 1,579 994,270 808,548 Source: BANBEIS, Education Statistics 2017. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 13 1.3. KEY ISSUES IN AFFILIATED COLLEGE SYSTEM IN BANGLADESH 13. Across the affiliated college systems in the region, casts a long shadow over the quality and relevance of the maintaining the quality standards for their massive education of affiliated college systems. affiliation networks while accommodating fast- growing student enrollment has been a formidable 14. College education in Bangladesh is under challenge. The expansion of affiliated colleges has been tremendous pressure for quantitative expansion of done largely under a loose regulatory supervision and access, risking the deterioration of quality standards. at the expense of the quality of education. Education The NU is mandated to design and supervise all the services at affiliated colleges are often marred with academic contents and affairs of the affiliated colleges dilapidated facilities, poorly trained teachers, weak (for example, approval of affiliation of institution and governance and accountability, lack of quality assurance programs, curriculum design and revision, student mechanism, and rigid curriculum,6 making it the ‘weakest examination, student registration, degree awarding, link’ in the higher education sector (Lee 2011). While there college inspection, and teacher training). However, is no evidence to establish direct causalities that this its capacity has been stretched thin as the number of mechanism of affiliation would inevitably lead to poor affiliated colleges grew rapidly. The total number of higher education quality, the affiliation system in South Asia education students increased by over 70 percent just over does seem to have formidable limitations and capacity five years from around 1.5 million in 2010 to around 2.7 constraints. Affiliated colleges typically lack autonomy in million in 2017. An increasing pool of higher secondary their academic affairs and other administrative decisions, school graduates has led to more students pursuing which limits institutions’ ability to respond to local market tertiary education and pressing demands for expanding demands and flexibility in academic program designs. access to tertiary education. Responding to the social Affiliated colleges are also a considerably diverse group pressure, the number of higher education institutes also of institutions in terms of size of student enrollment and grew by over 40 percent to over 2,000 institutes by 2018, teaching staff, institutional capacity for teaching and including 143 universities. The speed of expansion has learning and management, geographical and economic been overwhelming in any standard and probably beyond environment, and so forth. Designing academic contents the capacity of any education system to achieve orderly and pedagogical methods that are uniformly suitable expansion with adequate quality assurance. Now, the risk for all affiliated colleges, therefore, would likely be of quality deterioration in higher education especially at inherently challenging. In the meantime, much of the colleges appears eminent and calls for greater investment resources of affiliating universities would often have to in maintaining and improving the quality standard of be consumed by the gigantic administrative works to college education services. maintain the extensive network of affiliation, including, 15. The management of tertiary colleges in Bangladesh among others, holding examinations, degree awarding, is fragmented and involves multiple entities, adding student registration, teacher management, and financial many layers of complexity in governance and affairs. Developing academic curriculum centrally may management of the affiliated college subsector. have its own merit and would help affiliated colleges, Academic affairs are entirely managed by the NU, which especially weaker ones, ensure the minimum standard is a fully autonomous public university, governed by the of their program offering. Nonetheless, the capacity of provisions of its own Acts. However, other managerial affiliating universities to develop high-quality and market affairs of colleges are overseen by other government relevant curriculum and ensure regular revision has been entities. For instance, human resource management and less than adequate in many instances. Quality inspection financial management of public colleges are managed by affiliating universities on education services of their by the Directorate of Secondary and Higher Education affiliated colleges is also often inadequate due to capacity (DSHE) of the MoE. Government college teachers are constraints of affiliating universities and the sheer size recruited in the similar manner as public servants. of their affiliation community. Weak quality assurance 6 Available literature on affiliated colleges is severely limited; however, the available evidences point to the commonly held challenges such as those listed here (Awan 2016; Lee 2011; World Bank 2014b.) 14 Nongovernment college teachers are recruited by the secondary education part of those colleges are managed institution from a pool of teachers who are registered and by the DSHE and yet other relevant central agencies. certified by a government agency called Nongovernment Taken together, the governance and management system Teachers Registration and Certification Authority (NTRCA). for the colleges in Bangladesh are highly fragmented Teacher training for college teachers are provided by and making concerted development efforts ever more the NU and by the National Academy of Educational challenging. Management (NAEM). Moreover, academic affairs for the 1.4. OBJECTIVES OF STUDY 16. In the last 10 years, the World Bank has been the 17. This study was commissioned to address the main development partner for the Government of mounting concerns about the quality of education Bangladesh to improve higher education and generate at affiliated colleges in Bangladesh and to provide knowledge about the sector. In 2009, the MoE embarked evidence about job market performance and on a new project, Higher Education Quality Enhancement employability of affiliated college graduates.7 First of Project (HEQEP), with the financial and technical support all, at the time of this report, there was little evidence on from the World Bank and with the objectives of improving job market performance of affiliated college graduates the quality of education and governance of university and relevance of college education in this region. No sector in the country. The project was the first-ever graduate tracking survey had been undertaken. It should World Bank-supported project in higher education in be highlighted that this is the first systematic attempt to Bangladesh and implemented for the subsequent 10 years track the employment outcomes of college graduates until 2018. Eventually, the World Bank went on to extend in Bangladesh. The main objectives of the study are (a) its support to the affiliated college subsector with another to assess the employment outcomes of graduates from project called College Education Development Project the affiliated colleges after about 24 months of their (CEDP). Previously, the subsector had never received graduation; (b) to analyze job search practices among any support from development partners despite its graduates and job placement support of affiliated outsized presence and relevance for overall performance colleges; and (c) to receive and reflect on feedbacks of higher education in Bangladesh. The project has from graduates and employers about the quality and three components: (1) Strengthening Strategic Planning relevance of education at affiliated colleges. Based on and Management Capacity; (2) Improving Teaching and the evidences gathered, the study sets out to offer policy Learning Environment in Participating Colleges; and (3) recommendations and possible future interventions Project Management, Communication, and Monitoring for the MoE, NU, and colleges. This study adds value by and Evaluation. The CEDP is expected to continue for five creating much-needed evidence about the employability years until June 2022. In part due to the lack of presence of affiliated college graduates and deepening of development partner involvement, the subsector has understanding about the current situation of college- been faced with a paucity of evidence base for policy to-work transition. It will provide invaluable evidence decision making and situation analysis. This graduate that can facilitate policy dialogues and contribute to tracking study was conceived to fill the knowledge gap in the improvement of quality and relevance of college the subsector and was undertaken as part of the World education in Bangladesh and provide comprehensive Bank’s advisory and analytical support to the government. case study evidence on college graduates’ employability to inform discourse surrounding the affiliated college systems in the South Asia region. 7 Employability of graduates is considered to be about graduates having a right mix of relevant skills and other attributes which enable them to perform professional roles successfully and help them become successfully employed in job market. Employment of graduates, on the other hand, is about graduates successfully finding jobs after finishing schooling. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 15 1.5. METHODOLOGY 1.5.1. SURVEY METHOD, SAMPLING, AND was done randomly from the registry books of graduates INSTRUMENT which were available at the colleges. The graduates were then tracked through the contact information available 18. The study adopted a multifaceted approach to on the registry book and were first contacted by phone survey data collection and analysis. Three different numbers of graduates or their guardians. For those but related groups of stakeholders were interviewed in a graduates who were successfully reached, interviews were bid to generate more holistic understanding of and allow conducted face-to-face using structured questionnaire triangulated interpretation about graduates’ employment in locations convenient for the graduates. Further, a outcomes, labor market relevance of college education, sample of employers were selected randomly from among and existing skills gap. The three respondent groups are the employers of the employed graduates and were (a) graduates who graduated from degree pass, honors, interviewed at their workplaces. or master’s programs from the NU-affiliated government and nongovernment honors or master’s colleges8 around 20. Data collection instruments used include three three years earlier;9 (b) employers of the employed structured questionnaires: (a) graduate questionnaire, graduates; and (c) principals and vice principals of the (b) institution questionnaire, and (c) employer affiliated colleges. The study set a period of three years questionnaire. Questionnaires were developed by the from graduation for measurement of graduates’ status. World Bank team in collaboration with the survey firm and The survey collected information from (a) 2,350 graduates coded into a Computer-Assisted Personal Interview (CAPI) from the NU-affiliated colleges, (b) 235 employers of software called ‘Survey Solutions’. The questionnaires and currently employed graduates, and (c) principals/vice the CAPI tools were pilot tested for finalization before the principals of 35 government and nongovernment colleges. full field survey. The questionnaires were translated into the local language, Bangla, to aid the understanding of 19. The survey draws on a nationally representative question for respondents. sample of college graduates from honors and master’s colleges in Bangladesh. Samples were selected in a 21. Data collection in the field took place from multistage random sampling: at college, department, February 22 to April 13, 2017, after a pilot testing of and graduate levels. Sampling frame of colleges the instruments in October 2016. Before the fieldwork, (primary sampling unit) includes all government and the survey team conducted a five-day training program nongovernment honors and masters colleges affiliated for field surveyors where they discussed the feedbacks to the NU that had at least 150 graduates in honors on the pilot survey and interviews, reviewed respondent course in 2013. Around 330 colleges meet the criteria. A selection methods, questionnaires and screener, CAPI total of 35 colleges were then randomly selected through devices, discussed corrective measures for the problems stratified sampling. Then, six departments in honors identified during the pilot interview, and responsibilities colleges and eight departments in master’s colleges of the field investigators and their supervisors. After were randomly selected in each college. Selection of completion of this rigorous training, 10 investigation departments were done considering the course properties teams consisting of a total of 51 field surveyors were such as level (degree (pass)/honors/master’s) and subject deployed to conduct the face-to-face interviews. Interview type (science/non-science). At each of the sampled data entered through CAPI were instantly transmitted to departments, 10 graduates were randomly selected to the central server where supervisors reviewed the data participate in the data collection. Selection of graduates quality. 8 Degree pass colleges were excluded from the study because their share in tertiary-level enrollment is limited and the government has a strategy to phase out pass programs in favor of Honors programs. 9 Three years may seem too long a waiting period in other contexts; however, based on the prior information from local experts, it was learned that it is common for college graduates in Bangladesh to struggle in job search for extended periods before landing decent jobs. 16 1.5.2. STRUCTURE OF THIS REPORT and offers information on unemployed graduates and graduates still in school. Chapter 4 summarizes feedbacks 22. Next chapters of this paper report on the findings from graduates and employers about quality and from the graduate tracking survey and are organized relevance of college education and their demands for into four main sections. Chapter 2 briefly discusses improvement in college education. Finally, drawing on characteristics and socioeconomic background of the the findings and discussions, Chapter 5 presents policy surveyed college graduates. Chapter 3 lays out main recommendations of the study for institutional- and findings of the survey about employment outcomes system-level improvement. of graduates, discusses quality of wage employment, GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 17 18 2 WHO ARE THE AFFILIATED COLLEGE STUDENTS IN BANGLADESH? 23. This chapter describes the characteristics of students in the affiliated colleges in Bangladesh based on the profile of surveyed graduates. Basic understanding on their demographic, family, academic, and work-related background will help better understand their employment-related outcomes in the later chapter. In sum, it is found that college students are from diverse socioeconomic backgrounds but tend to be from relatively modest families and have had mediocre academic performance in secondary schools. 2.1. BACKGROUND OF COLLEGE STUDENTS 24. Most college students are youths transitioned directly from higher secondary schools at around the age of 18 and are likely to graduate at the age of 21–23. As Figure 3 illustrates, almost all college students studying in four-year honors courses graduate from college when they are between 21 and 23 years of age. Age distribution pattern of the master’s course graduates looks identical except that they are one year older to account for the one additional year of study. It is clear that affiliated colleges by and large cater to serve these young generations who continued their course of study from higher secondary education, and college students with substantive work experience are only a handful even at the master’s level. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 19 Among the sampled graduates, a third of fathers have had 36% 36% 36% only primary education while about half of fathers are secondary school leavers. Tertiary education qualification 28% holders are quite uncommon among parents of college students. In terms of industry of employment of parents, 22% agriculture is the main engagement, where about 40 17% percent of the fathers are employed, while another 24 percent are engaged in wholesale and retail trade businesses. Very few (4 percent) consider themselves as 9% 8% professional-level workers in nonteaching occupations. The teaching profession is also not so common among 3% 2% 2% 1% the parents. This finding likely suggests a positive intergenerational upward social mobility that many of 20 21 22 23 24 25 college students are experiencing. Colleges may well be Female Male the most realistic, though not the most desired, tertiary education option for students from families with limited Figure 3: Age at College Graduation among Graduates financial means. This finding is also indicative of the from Honors Course, by Gender limitation of parental guidance for a range of matters like Source: College Graduate Tracer Study (Graduate Survey), 2017. school choice, job search, and career choice. 25. Students generally come from humble family 26. Colleges are enrolling academically average- backgrounds; many of their parents are farmers and performing students. The share of high-performing have only primary education certificates. Most of the students getting admission in colleges is much lower parents of college students are not as well-educated as compared to the student quality of universities and their children are, though in comparison to the general polytechnic istitutions. Only about one-third of the population, they are still considerably more educated.10 NU graduates scored grade point average (GPA) of A or Father Mother 54% 49% 45% 54% 49% 45% 34% 34% 17% 17% 2% Agriculture, Forestry and Fishery worker Business Professional Technology Professional Service Worker Technician/ Professional No Education/ Primary Secondary Diploma/ Bachelor/ Higher Figure 4: Education and Occupation of Parents of College Graduates Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: Only 3 percent of mothers been ever employed and thus not shown in the figure. 10 Based on Labour Force Survey 2016, 31.4 percent of the population of age 5 and older have no formal education, 22.7 percent have primary education, 34.3 percent have secondary education, 7.1 percent have higher secondary education, and 4.2 percent have tertiary education. 20 A. Total B. By sex, college ownership, completed degree C of less A+ A 19% 3% 29% 3% 29% 27% 23% 18% A+ Male A 4% 30% 19% 29% 18% Female A- B 3% 30% 23% 26% 18% Public C or less 1% 24% 31% 29% 15% Private 1% 15% 20% 35% 29% Degree Passcourse 4% 36% 28% 22% 10% Honours B A- 4% 34% 22% 24% 17% 25% 23% Masters Figure 5: Proportion of NU Graduates by the SSC National Examination Result Source: College Graduate Tracer Study (Graduate Survey), 2017. higher in secondary school certificate (SSC) national have prior work experience. About 80 percent of the exam, whereas the recent tracer studies on university and recent NU graduates had non-science background in polytechnic graduates show more than 90 percent and secondary schools and were enrolled in non-science 70 percent of the university and polytechnic graduates, subjects—commerce, social science, and humanities. respectively, have attained the same. Across colleges, Science students are a small minority, accounting for only honors and master’s colleges, which tend to be larger and 13 percent.11 It should be noted that secondary school more urban based, tend to attract better-quality students graduates from science stream can enroll in any course for admission, whereas degree pass colleges seem far less in colleges; however, students from humanities, social attrative to good performers. science, and commerce streams in secondary education cannot enroll in science courses in colleges. The 27. Students with humanities and social science composition of subject streams in secondary and college specialization are dominant in colleges, and few Vocational Humanities Science Madrasa Commerce 1% 48% 16% 2% 33% A. By HSC stream Humanities Science Social Science Commerce 38% 13% 21% 28% B. By college subject stream Figure 6: Composition of Subject Streams of NU Graduates Source: College Graduate Tracer Study (Graduate Survey), 2017. 11 The shares of subject streams among the respondents do not necessarily represent the entire population of tertiary college students in Bangladesh due to exclusion of degree pass colleges from the sampling frame. There are multiple reasons for the low share of science students in colleges. Looking back in time, Bangladesh’s colleges, from the time they were first established in the early 19th century, were traditionally only humanities teaching institutions. In the colonial period, there was no jobs for science graduates because there were no industries. The colonial administration needed only clerks and accountants and jobs were mostly available in government offices. This preponderance of humanities’ teaching and learning is originally a legacy of colonial education system. In the present day, absence of science teaching infrastructure (labs and teachers) in colleges has become a major barrier in expanding science enrollment. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 21 levels largely reflects this rigid intersubject mobility. urban concentration of jobs (if not in reality, at least in Almost all college students come to college straight from perception) that require college degree. Though this secondary schools without working gap years in between. urban, semi-urban, and metropolitan pull is affecting both Only 7 perent of the gradutes reported to have had some males and females, a higher rate of city- and urban-bound work experience before they went to college. internal migration is visible among male graduates. For female graduates, a significant share of urban- or city- 28. Tertiary education incentivizes rural-urban bound migration could be related to marriage. Figure 7 migration. About 60 percent of the NU graduates are shows the share of male and female graduates by current originally from rural areas, where their parents still and original residence in rural, urban/semi-urban, and reside. However, if we look at their current location, metropolitan locations. The highest concentration of NU only about one-third of the graduates (32 percent) are graduates, 43 percent, are currently located in urban or currently located in rural areas indicating high rural- semi-urban locations. urban migration contributing to rapid urbanization and 32% 27% 22% 21% 19% 16% 16% 14% 11% 14% 6% 3% Origin Current Origin Current Origin Current Metro Urban/Semi-urban Rural Figure 7: Original and Current Residential Locations of NU Graduates, by Gender Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: Original location means the location of students’ families. 22 GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 23 24 3 HOW ARE THE COLLEGE GRADUATES PERFORMING IN THE JOB MARKET? 29. This chapter describes the labor market outcomes and presents the labor market-related analysis of graduates after three to four years of their graduation. All major outcomes of labor market have been discussed, including wage employment and self-employment, unemployment, graduates engaged in further education and training, and NEET (Not Engaged in Employment or Training). Earnings, motivations, and expectations of different groups are also discussed. 3.1. EMPLOYMENT OUTCOMES 30. Majority of graduates are active in the labor force—65 percent. This share is higher than the overall participation rate of working-age population in the country, which stands at 58.5 percent in 2015.12 The rest, who are currently not in the labor force, are mostly engaged in further education, while only about 1 percent are neither part of the labor force nor in education. It needs to be noted that 97 percent of all graduates looked for jobs right after graduation. Those who were unable to find a desired job went back to pursue higher education. Those who completed their final tertiary education (that is, master’s degree) stayed in the labor market despite being unemployed. 12 Based on Labour Force Survey 2015–2016. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 25 1% NEET 19% Employed 34% Farther Education Graduates 18% 1% Wage Self- employed employed 46% 11% 5% 2% Employed Full-time - Part-time - Short-term: permanent permanent temporary Figure 8: Overview of Employment Status of Graduates Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: The numbers in parenthesis show the shares on each status against the entire college graduate population. 13 31. Only around 20 percent of graduates are employed alarming. A much higher share of male graduates is while nearly half, 46 percent, of graduates remain employed compared to their female counterparts: 25 unemployed after three years of graduation. Figure 8 percent for male and 14 percent for female graduates. summarizes the current economic status of graduates, Meanwhile, a higher share of female graduates are still including both bachelor’s and master’s degree graduates, pursuing further education, practically further forgoing roughly after three years of their graduation. Among the their entrance into the labor market. The survey data do employed graduates, wage employment is the main form not permit in-depth analysis into the reason behind the of employment. Self-employment does not seem to be phenomenon; nevertheless, given the country’s labor the type of economic engagement that the graduates market environment, it would be reasonable to think that aspire to participate in—only 1 percent of graduates are some of them lack the intention of joining the labor force currently being engaged in self-employment. What is in the first place or might have gotten discouraged by most striking is that the highest share of graduates—46 percent—are still unemployed and looking for jobs, even after spending three to four years since first graduating from their colleges. This level of unemployment is 46% 46% 47% 39% extremely concerning and raises serious questions 34% 29% about job readiness and skills to manage school-to-work 25% 19% 14% transition among the college graduates in Bangladesh. The share of unemployment varies by groups such as location, degree, and subjects. It should also be noted that around one-third of graduates are still studying and forgoing their job market participation. Each economic Male Female All outcome will be separately discussed in detail in the subsequent sections. Employed Unemployed Student 32. Employment outcomes differ significantly across Figure 9: Employment Outcomes by Gender gender. Gender gap in graduates’ job placement is Source: College Graduate Tracer Study (Graduate Survey), 2017. 13 Definitions of terms used in this paper. Labor force, LF: Population who are available for work. This includes both who are currently employed or secured a job and those unemployed who are looking for jobs. Employment (unemployment) share: The ratio of employed including those who may not be currently working but secured a job (unemployed) against the overall size of the cohort. Unemployment rate: The percentage of the labor force that is not employed. NEET: Graduates, not employed or engaged in further education and/or training, ‘not in labor force’. GPI: Gender Parity Index is used to compare parity between male and female. It is calculated as the ratio of figure for female against the figure for male. GPI below 1 indicates female underperforming male, GPI above 1 indicates female outperforming male. 26 earlier experience of job search. Whatever the case might 3.1.1. GRADUATE CHARACTERISTICS ASSOCIATED be, it is evident that jobs are extremely hard to come by WITH EMPLOYMENT OUTCOMES for female graduates from the affiliated colleges. 34. As discussed earlier, being employed, unemployed, 33. Significant proportions of bachelor’s degree and enrolled in further education programs are graduates pursue further education despite the found to be the main three employment outcomes equally unpromising job prospects for master’s course for graduates of the affiliated colleges. The study graduates. In most cases, bachelor’s degree holders attempted to analyze factors associated with the spend another year or two to acquire master’s degree incidences of these three outcomes using the multinomial while waiting to get a job after completing the terminal logit regression (Table 6).14 It estimates the relative degree, most probably with the aim of enhancing their probabilities of the three outcomes after three years qualification in the job market. In most cases, this strategy of graduation controlling other influencing factors. does not seem to be working in the way they hoped Estimated effects represent the average effects of one- for, not the least because in the job market, chances of unit change in the observed variables on the probabilities master’s degree graduates are just as bleak as those of of respective labor market outcomes. The associated bachelor’s degree holders. By moving up to the master’s standard errors are in parenthesis. program, many of them are in effect doing nothing more than postponing the inevitable confrontation with the 35. Graduates with science background seem to challenging job market reality. Graduates with master’s do relatively better in the job market. Being an NU degree are all out in the labor market with a very high college graduate of a science subject is associated with share—as high as 71 percent of unemployment. Only a 8.5 percent higher chance of being employed than being quarter of master’s course graduates are employed after a graduate of humanities. Other than this, educational three years of graduation. performance or degree are not associated with being employed. This higher likelihood of being employed for a science graduate is potentially the result of mainly two factors. First, job market demand may be higher for graduates with science and technical backgrounds. 71% Relatively higher employment rates for graduates of polytechnics15 in Bangladesh also supports this 61% claim. The second possible factor is self-selection of 48% academically meritorious students into science streams. 46% In Bangladesh, students with better academic credentials 35% 34% and examination results generally prefer to study science 25% 25% 17% 19% subjects. Thus, science graduates on average may possess higher cognitive skills and are likely to perform better in 13% the job market. Subject of the study does not have any significant effect on pursuing further education. 2% 36. Graduates with prior work experience have significantly high chances of being employed. Degree Pass Honours Masters All Graduates with prior experience are likely to be more aware of the reality of school-to-work transition and Employed Unemployed Student more prepared for the job world with higher experience- induced noncognitive skills. But it is also likely that those Figure 10: Employment Outcomes by Degree with prior work experience come from a difficult financial Source: College Graduate Tracer Study (Graduate Survey), 2017. 14 Use of multinomial logit was mainly due to the multiplicity of choices and nonlinearity in decision making regarding labor market participation. While some students preclude job market participation, other students opt for further education only after some period of futile job search. The majority of respondents indicated that they have at least tried to look for jobs after graduation, suggesting that taking up further education is a coping mechanism for them in the face of difficult job market reality. Observable labor market outcomes are unemployed, employed, and further education. Graduates who are self-employed were excluded from analysis due to the small number of observations. Associations between factors and labor market outcomes here should be seen more as correlations rather than proof of direct causalities. 15 Tracer study of graduates of polytechnic in Bangladesh shows 37 percent of all graduates are employed with one to two years of graduation. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 27 background and might possess lower reservation on wage restricted by cultural practices and traditional values or lower threshold for job quality. Though we are unable against married women working outside home, time to identify the cause, the strong correlation indicates constraints due to household maintenance and care that mandatory internship before graduation organized giving limiting the urgency of finding jobs, even if they are by tertiary colleges can have a significant impact on still interested in finding jobs. students’ preparedness for the real world and their future job prospects. 39. Higher socioeconomic background is significantly negatively correlated with employment outcome. 37. Location and geographic region matter for Father’s educational qualification can be used as a good employment. Even after controlling for other covariates proxy for socioeconomic background of graduates. It that affect the chances of getting employed, the appears that the likelihood of being employed declines graduate’s location of residence matters. A graduate for students from families with better socioeconomic currently residing in a metropolitan area is significantly standing as having a father who has secondary or tertiary more likely to be employed compared to a graduate education is significantly negatively associated with the currently residing in rural locations. It is not an chance of being employed. The potential explanation unexpected correlation because generally more jobs are of this negative correlation could be that graduates with available in cities; additionally those who are from cities better off socioeconomic background can afford to have are likely to be more connected to city-based job network. higher reservation price for salary and job quality which There is no statistically significant difference between can encourage them to prolong their job search until they graduates from rural or urban and semi-urban locations find jobs that meet their expected standards. Investigating regarding employment outcome once we control for the school-to-work transition of Bangladeshi youth, (Toufique impact of other covariates. Among the geographic regions, 2014) also found that unemployment is higher among Khulna and Rajshahi negatively affect the incidence of youths from well-off backgrounds, suggesting they take being employed. time to find suitable employment options as they can afford it. 38. Gender-related social norms appear to play a large factor in labor market decisions of college graduates. 40. Having a master’s degree does not seem to For unmarried single graduates, gender does not seem improve employment outcomes and employability to influence the chances of being employed. There is significantly. Having a master’s degree is associated with no significant statistical difference in the probability significant increase in the likelihood of unemployment for of employment between unmarried male and female graduates and just a marginal increase in the probability graduates. However, marriage seems to change the of being employed. Although many honors course equation. The estimated probability to be employed for graduates move up to master’s programs in a hope married male graduates is nearly 20 percentage points to enhance their employability, the outcome of such higher than their unmarried peers, whereas the likelihood decisions does not seem very positive. A master’s program of being employed for married female graduates is nearly may not be adding much value in terms of additional job 10 percentage points lower than that for unmarried male relevant skills for students. graduates. Once married, female graduates are possibly Table 6: Factors Associated with Labor Market Outcomes of College Graduates Labor Market Outcomes Unemployed Employed Further Education Variables: Effects SE Effects SE Effects SE Area of study (base: Humanities) Science −0.005 0.043 0.085** 0.035 −0.080** 0.038 Commerce 0.053 0.038 0.014 0.030 −0.067** 0.029 Degree (base: pass-course) Honors −0.160*** 0.041 −0.050 0.032 0.211*** 0.039 Master’s 0.346*** 0.050 0.077* 0.045 −0.423*** 0.039 28 Labor Market Outcomes Unemployed Employed Further Education Variables: Effects SE Effects SE Effects SE Prior work experience −0.087* 0.049 0.153** 0.061 −0.066 0.055 Public college −0.087** 0.038 −0.021 0.034 0.108*** 0.026 High GPA −0.018 0.046 −0.032 0.032 0.050 0.051 Current location (base = Rural) Metropolitan −0.062* 0.037 0.098*** 0.035 −0.036 0.035 Urban/semi-urban 0.026 0.033 0.028 0.028 −0.055* 0.028 Geographic region (base = Dhaka) Rajshahi 0.078** 0.040 −0.057* 0.032 −0.021 0.032 Khulna 0.085** 0.037 −0.100*** 0.031 0.015 0.031 Chittagong −0.193*** 0.045 −0.013 0.047 0.205*** 0.045 Barisal 0.034 0.076 −0.075 0.064 0.041 0.067 Rangpur 0.133*** 0.048 −0.030 0.039 −0.103*** 0.034 Mymensingh −0.005 0.095 0.027 0.074 −0.022 0.069 Marriage and Sex (base = Unmarried male) Unmarried female −0.053* 0.031 −0.015 0.029 0.068** 0.029 Married male −0.160*** 0.056 0.195*** 0.063 −0.035 0.050 Married female 0.055 0.040 −0.096*** 0.029 0.042 0.036 Age in years 0.005 0.011 0.000 0.010 −0.005 0.009 Father’s education (base: primary or less) Having secondary degree 0.051 0.033 −0.090*** 0.031 0.039 0.030 Having tertiary degree 0.023 0.046 −0.097*** 0.037 0.075* 0.041 Log likelihood / Pseudo R2 −239,220.52 / 0.2678 Observations 2,320 Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: ***p < 0.01, **p < 0.05, *p < 0.1; Effects are presented in Average Marginal Effects (that is, the average change in probability of outcomes when variable x increases by one unit while keeping other variables constant). 3.2. WAGE EMPLOYMENT 3.2.1. OVERVIEW OF WAGE EMPLOYMENT 42. The education sector—primary schools and secondary schools—is by far the largest source of 41. This section will look more closely into the status employment for affiliated college graduates. Among and quality of employment among waged graduates all the employed graduates, as much as 43 percent are including wage levels and job satisfaction. Gender working in the education sector. Most (nearly 90 percent) gaps in the quality of jobs will also be examined. Special of those graduates working in the education sector attention will be paid to identifying common job search are working for basic- or secondary-level education strategies among college graduates. Some of the findings institutions. The remaining 10 percent are in tertiary-level are represented by only a small percentage of the sample institutions or vocational institutions. The other industries and need to be interpreted with caution in terms of where decent shares of the graduates are employed are representativeness and confidence level. finance and insurance, wholesale and retail, health, and GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 29 information and communication technology (ICT) sectors. 44. There is a strong gender-based occupational Results show that other than teaching, managerial, or segregation, in which the range of career choice professional occupations, service, sales, and hospitality for female graduates seems far narrower than that related jobs are the most common occupations for the for male graduates. It is immediately clear that female graduates of tertiary colleges in Bangladesh. graduates are overwhelmingly concentrated in the education sector and in teaching profession. As much as 43. The manufacturing sector is the second largest 70 percent of the employed female graduates are found employer of graduates. Around 17 percent of college to be engaged in the education sector. This is rather an graduates are employed in this sector. Especially extreme form of gender-segregated career pathways for among male graduates, the share of those going to tertiary education graduates. It is indicative of the reality manufacturing is higher, accounting for nearly a quarter that the only plausible, and probably most preferred, of male graduates. Within manufacturing industry, career choice for many female college graduates is to readymade garments, food products and agroprocessing become a teacher. Teaching is generally viewed as a business, and pharmaceuticals are the main employers. female-friendly job in the Bangladeshi social context. These are industries that have been the driving force The nobility attached to teaching also makes it socially of recent remarkable economic growth of the country acceptable and at the same time a respectable career, and those that have become emerging and promising and thus a common employment choice for women. industries for future growth. Given their growth potential, This overconcentration of female college graduates in job opportunities in these industries are likely to continue education jobs stands out sharply even in comparison to grow strongly in future. with the general population (for example, only 10 Table 7: Industries where Graduates Are Employed Industries All (%) Male (%) Female (%) 1. Education 43 28 70 2. Manufacturing 17 23 7 3. Financial and insurance activities 7 9 5 4. Wholesale and retail trade 7 9 3 5. Health, nursing, and social work activities 7 8 5 6. Information and communication 5 7 2 7. Other industries 14 18 8 Total 100 100 100 Source: College Graduate Tracer Study (Graduate Survey), 2017. 66% 38% 24% 25% 18% 22% 18% 17% 14% 11% 9% 9% 7% 7% 5% 1% 1% 2% 1% 2% 2% Teaching Sales/ Managerial/ Technician Clerical Public Admin Others hospitality professional All Male Female Figure 11: Occupations of Currently Employed Graduates Source: College Graduate Tracer Study (Graduate Survey), 2017. 30 percent of all employed females in urban area worked than 50 employees.16 This is consistent with the overall job in education in 2016, while as much as 32 percent of all and industry situation of Bangladesh where 70 percent employed females in urban area work in manufacturing to 80 percent of nonagricultural workforce is employed sector). In the light of the prevalence of unemployment in SMEs. It should be noted that these SMEs are likely to among graduates, this lack of viable career options include nongovernment education service providers (that for female graduates would certainly not be helpful to is, primary- and secondary-level private schools). More encourage better employment results because the total than 95 percent of secondary schools, for example, are number of teaching positions is limited according to privately owned entities with fewer than 50 employees. government regulations and school supply in the locality. 46. Employed male graduates are more inclined to be 45. Private sector jobs, especially in small and medium working for larger-size employers and in private sector size enterprises (SMEs), are the main sources of jobs. Decomposition of employer type and size by gender employment for the graduates. The type and size of demonstrates some distinguishable gender differences employers of the employed graduates are presented in in the characteristics of employers. First, male graduates Figure 12. Most of the employed graduates (68 percent) appear to be more private sector oriented. A higher share, are working in private sector companies or individually 58 percent, of male graduates are employed in private owned businesses. It should be noted that many of companies compared to 42 percent of female graduates. those who are working in the education sector would fall On the other hand, a higher share, 27 percent, of female into this category as more than 95 percent of secondary graduates are employed in public sector jobs, whereas schools in Bangladesh are privately owned and operated only 17 percent of male graduates are in public sector schools. The public sector jobs (government, local jobs. Moreover, female graduates seem to tend to work government, and autonomous public institutions), for smaller employers. The share of graduates working for including public schools, account for a substantial but large companies with more than 100 employees is much relatively small share of employment of the graduates higher for male graduates at 38 percent compared to 21 (21 percent). In terms of the size of employer, about half percent for female graduates. (48 percent) are employed in SMEs comprising not more A. Type 52%, Private firm/ B. Size company 16%, Individually owned 13% company/business 32% Less than 10 More than 13%, Government 1000 6%, NGO (local/ international) 4%, Othrs 4%, Autonomous public institution 4%, Local government 2%, Company 21% 35% 51-1000 11-50 owned by family Figure 12: Type and Size of Employers of Graduates Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: NGO = Nongovernmental organization. 16 Based on Bangladesh Bank-provided definition, small enterprises are the ones that employ less than 50 staff. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 31 3.2.2. QUALITY OF EMPLOYMENT 48. Employed graduates of the affiliated colleges earn decent wages. The starting salary for employed 47. A large majority of the employed graduates are graduates were, on average, BDT 9,411 per month. Their in stable employment with permanent contract. current monthly salary stands at BDT 11,814, which is While it is difficult for graduates to find jobs, those who slightly lower than the national average monthly income did land a job tend to be employed on permanent for people of ages between 25 and 34 (BDT 12,800 in 2016, contracts. As much as 82 percent of the employed according to the Labour Force Survey) and slightly higher graduates are working as permanent employees. Among than that for polytechnic graduates (BDT 10,800 in 2016). these permanent employees, more than two-thirds Monthly salaries vary by industry as well as occupation, are employed as full-time workers, and the remaining contract type, and location of employment. one-third are in part-time employment. Only 12 percent of the employed graduates are in temporary or short- 49. Graduates in manufacturing jobs receive the term positions. For those who have temporary jobs, the highest salary, followed by those in financial and contract is usually for more than 1 year. Almost everyone insurance sector jobs. The monthly salary of graduates (97 percent) of those who are currently in temporary in the manufacturing sector is 21 percent higher than the short-term positions reported that they continued their overall average of graduates. Salary is at the lowest in search for full-time positions. For full-time permanent the education sector where the highest share of college jobs, the share of graduates does not vary by gender. graduates, especially females, are concentrated. Salary However, female graduates are slightly more likely to work in the education sector jobs is only three quarter of the in part-time permanent positions. On the other hand, overall average salary of graduates. This relatively low more male graduates are engaged in temporary or short- teacher salary is due to government regulations. It should term jobs than female graduates. This may indicate that also be noted that teaching jobs also offer an opportunity male graduates prefer being engaged in full-time jobs, to earn additional income through private tutoring. be it permanent or short term, to earn enough money, Income from teaching jobs is likely to be underreported while for female graduates, permanent jobs with less time because private tutoring may not be perceived as part commitment could also be attractive. of the salary and is also discouraged by the government. Across occupations, salary is higher for managerial or professional occupations as well as for service-, sales- or 1% 2% 0% 4% 3% 5% hospitality-related occupations. Table 8 presents the 12% 14% 8% current average salary by occupation, contract type, and location of residence for male, female, and both. Average salary in metropolitan areas is much higher than for jobs 27% 25% 31% located in urban or semi-urban or rural location. Table 8: Average Current and Starting Salary among Wage 56% 56% 56% Employed by Industry (BDT) Industry Starting Current Manufacturing 11,250 14,264 All Male Female Wholesale and retail trade 10,557 12,705 Information and communication 11,015 12,775 Permanent full-time employee Permanent part-time employee Financial and insurance activities 12,425 13,320 On a temporary and short-term job Education and teaching 6,972 9,020 Self-employed Health, nursing, social work 8,078 10,575 Not employed, but have got a job/secure activities All 9,411 11,814 Figure 13: Employment Contract Types of the Employed Source: College Graduate Tracer Study (Graduate Survey), 2017. Graduates by Gender Source: College Graduate Tracer Study (Graduate Survey), 2017. 32 50. There is a significant gender wage gap among the Male Female 0.00006 employed graduates; however, gaps differ widely across occupations. GPI shows that against every BDT 100 a male graduate earns, a female graduate earns BDT 79. Considering a range of factors that might affect salary, the 0.00004 next subsection discusses and explains the existing salary density difference in more detail. Teaching is the most gender- neutral occupation in terms of salary with negligible 0 0.00002 difference in average salary by gender. On the other hand, jobs in service, sales, and hospitality are associated with the highest gender gap in salary; female employees earn 72 percent of what their male counterparts earn. Salary 10000 20000 30000 40000 disparity between male and female graduates are the Current Monthly Salary highest for part-time jobs and jobs located in rural areas. However, for managerial and professional occupations, average salary is 13 percent higher in favor of employed Figure 14: Distribution of Current Monthly Salaries, by Gender Source: Calculated by author. female graduates. Moreover, there is little gender wage Note: Dashed vertical lines indicate the average salaries for male and gap among teaching professionals. female graduates. 51. The majority of female graduates have wages much lower than the average while a smaller but comes to the quality of employment and wage level. not insignificant number of them enjoy salaries Wage distribution for employed female graduates shows comparable to male peers. There seems to be two a heavily right-skewed and bimodal distribution (Figure groups among employed female graduates when it 14). There is a high concentration of females toward the Table 9: Average Current Gross Salary by Occupation, Contract Type, and Current Location (BDT) Industry Starting Current Female GPIa All 11,814 12,819 10,166 0.79 By occupation Managerial/professional 14,182 13,847 15,678 1.13 Technician/tech professional 12,414 13,019 — — Teaching professionals 8,742 8,827 8,694 0.98 Service, sales, hospitality staff 14,368 14,987 10,818 0.72 Others 13,114 13,290 12,684 0.95 By contract type Permanent full-time 14,283 14,886 13,225 0.89 Permanent part-time 6,874 8,791 4,842 0.55 Temporary/short-term 10,042 10,159 9,609 0.95 By current location Metropolitan 10,903 11,800 9,176 0.78 Urban/semi-urban 8,348 8,502 8,051 0.95 Rural 8,622 11,060 6,074 0.55 Source: College Graduate Tracer Study, 2017. Note: Gender-segregated average cannot be calculated for technicians and tech professionals due to the scarcity of female graduates in that industry. a. GPI: (Salary earned by female) / (Salary earned by male). GPI below 1 indicates female earning less than male, GPI above 1 indicates female earning more than male. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 33 lower end of the distribution. This first group presumably 54. Gender disparity in wages is primarily due to more includes those who entered low-wage jobs in teaching female graduates working part-time for far smaller or other nonprofessional occupations often on part- wages. There is around 21 percent gender wage gap time basis. At the same time, there is another cluster of as shown in the descriptive analysis earlier. However, females toward the higher end of the wage distribution the gender wage gap shifts entirely once the interaction spectrum. Female graduates in this second group enjoy term between part-time contract and being female has good salaries comparable to their male peers and are been incorporated statistically. What it means is that the presumably fortunate ones who managed to find solid gender wage disparity is by and large stemming from jobs in the professional occupations on permanent full- the lower salary earned by female part-time workers, time contract basis. Therefore, for females, the reality of while there is only statistically insignificant wage wage employment appears to be somewhat bifurcated in difference between male and female full-time workers, a sense that some do make it into a promising career with after controlled for other variables. Statistically, being well-paying jobs while a larger group of them end up in a female part-time workers is associated with as much as more challenging career with low-paying unstable jobs. 43 percent less wage compared to being male part-time On the other hand, the wage distribution for employed workers. Moreover, female graduates are more likely to male graduates seems normal and only marginally be part-time workers than their male counterpart, which skewed to right. exacerbates the gender wage imbalance (roughly, a third of employed female graduates and a quarter of employed 3.2.3. GRADUATE CHARACTERISTICS ASSOCIATED male graduates are in part-time jobs, as discussed earlier). WITH WAGE LEVELS 55. Wage level is highly correlated with contract 52. Regression analysis reveals that the wage levels types and firm size, favoring full-time permanent of employed graduates are influenced by a range workers and larger-size firms. Both being part-time and of individual, employer, skills, and logistics-related temporary workers are significantly associated with much factors. The estimates of determinants of wages lower wages. On average, salary for part-time jobs is about corrected for self-selection into employment has been 35 percent less than that for full-time jobs. Firm size also presented in Table 11. affects salary levels. Salary is higher for those employed in larger firms. Working at SMEs—the reality for nearly 53. Language skills and academic performance seem half of the employed graduates—is associated with 15–20 to matter for wages. Though location, master’s degree, percent lower wages than working for non-SMEs, after science background, and prior work experience matter controlling for other variables. for finding a job, these factors do not seem to have a significant influence on wage levels. However, language 56. Using personal network as a method of finding a skills and academic skills, as measured by having studied job is strongly negatively correlated with wage levels. English and GPA scores seem to be significantly positively It appears that graduates who secured a job through associated with wage levels. Those who completed a competitive procedure are rewarded with significant their college degree in English receive wages that are on wage premium as jobs found through personal networks average 25 percent higher than those who did not. This is associated with 34 percent lower salary, even after is most likely due to the extra value added from their controlling for other factors. This is seemingly quite a English language expertise as there is high demand from negative impact for informal job searching to have in a employers for English language skills (see Chapter 5 for country where access to social networks still plays a big employers’ feedbacks). Academic performance is also role in determining one’s fortune in job market. More significantly correlated with higher salary, indicating researches are needed to understand the dynamics that better students manage to secure better salary behind this; however, it may be possible that job markets and/or better paying jobs. Getting a GPA of B or higher for tertiary education graduates in Bangladesh are now is associated with around 18 percent higher wages. This segregated in such a way that access to social networks may be partly explained by the practice of some large no longer guarantees access to high-quality jobs. employers to put GPA score threshold as one of the recruitment criteria. 34 Table 10: Determinants of Salary for Employed Graduates, OLS Estimation Dependent Variable: Log of Monthly Salary Coefficient (S.E.) Female −0.0373 (0.0751) Job characteristics Contract type (base: permanent full-time) Part-time contract −0.352*** (0.0779) Temporary −0.298*** (0.0792) Part-time contract*female −0.426*** (0.112) Working hours 0.007*** (0.00183) Occupation category (base: Other) Managerial/professional 0.071 (0.0855) Technician/tech professional −0.107 (0.108) Public administration 0.055 (0.206) Teaching −0.288*** (0.0866) Clerical −0.001 (0.183) Service, sales, hospitality staff 0.0188 (0.0873) Firm characteristics Firm Size (base: less than 50 employees) 51–100 staff 0.207** (0.0966) 101–1,000 staff 0.214*** (0.0818) More than 1,000 staff 0.158** (0.0665) Method finding the job Used Personal network (no = 0, yes = 1) −0.343*** (0.0508) Education, skills and work experience Work experience before college (no = 0, yes = 1) −0.053 (0.0913) English literature or medium (no = 0, yes = 1) 0.252*** (0.0950) Academic performance Cumulative GPA B or higher (no = 0, yes = 1) 0.175*** (0.0612) Socio-economic status Level of Father's education 0.043*** (0.0152) Constant 9.153*** (0.214) Observations 2,344 Source: College Graduate Tracer Study, 2017 Note: (a) ***p < 0.01, **p < 0.05, *p < 0.1; (b) Estimates are controlled for age, industry, and region; and (c) selection bias derived from individuals’ self-selection into employment is corrected using Heckman correction.than male. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 35 3.2.4. JOB SEARCH STRATEGY practice among women in Bangladesh and thus it is natural that there is a higher share of female graduates who got 57. Personal network is still the main source of finding jobs through competitive ways. a job, while college plays little role in supporting job searches. Half of the employed graduates found their 58. A large share of employed NU graduates started employment through informal personal or family networks, working before graduation. Graduates who are employed, consisting of family, relatives, or friends. Responding to about one-third of them, were already employed while job advertisements published in print media is the second graduating, another one-third found their first job within most successfully utilized source of finding a job. Colleges the first three months of graduation. This suggests the and departments of graduates have almost no contribution prevalence of the practice of working while studying among in finding employment; only 1 percent reported that they college students. Many of those who are employed simply found employment through their colleges or departments. continued to work at the same company where they had It seems that colleges under the NU do not offer job been working before their graduation. Another 20 percent placement services to its students and graduates or even if of the employed found jobs in the following three months, the service exists on paper, it is not actively implemented. bringing the share among the total employed up to 85 There are some differences in job search practices by percent within the first six months of graduation. By the end gender. A higher share of female graduates found their jobs of the first year of graduation, 97 percent of all the currently through competitive selection, while male graduates relied employed graduates had secured their first jobs. Given more on personal connections. This gendered pattern of this finding, college graduates should evaluate and adjust job search strategy or practice is not affected by differences job search strategies in case they are unable to secure a in industries. A plausible reason behind such practice is job by the first six months of graduation. Then, unless the likely cultural; professional socialization is not a shared situation changes by the end of the first year of graduation, 56% 50% 41% 39% 33% 29% 10% 9% 8% 8% 4% 4% 4% 3% 1% 1% 1% 0% Through Media Internet job Private Public Through the personal (newspaper) posting employment employment college (informal) All Male Female Figure 15: Method of Finding Employment by Currently Employed Graduates by Gender Source: College Graduate Tracer Study (Graduate survey), 2017. 35 100 % of graduates found jobs found jobs in each month % of employed graduates 30 80 25 (cumulative) 20 60 15 40 10 20 5 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 18 28 Number of months since graduation Figure 16: Number of Months it Took to Find the First Job for Currently Employed Graduates Source: College Graduate Tracer Study (Graduate Survey), 2017. 36 a reevaluation of the context, job search strategy, and to all. Among them, 62 percent reported that they were job market analysis should be done by the graduate and overall satisfied when only 27 percent of all employed alternative options such as upskilling through training, graduates reported to be satisfied. Those who are expanding job search area, relaxing expectations, and the employed in the education sector not only enjoy higher like need to be seriously considered. level of overall job satisfaction, they are also generally more satisfied about job stability, their job description, 3.2.5. JOB SATISFACTION and the way their work is appreciated in the society. For those employed in the education sector, the least level of 59. Overall satisfaction level with current job is less satisfaction comes from compensation and salary, and than moderate for college graduates. Only about one- lack of transparency of management. quarter of the employed graduates were reported to be satisfied and 10 percent were reported to be unsatisfied at 61. College graduates do not have much to choose from their current jobs. According to the job quality framework when it comes to jobs. One of the important reasons of the OECD, quality of jobs relies on three basic criteria— for choosing the current job is the lack of availability of job security, earnings, and working environment.17 Salary alternative options. Good working conditions and stable and job security are the two dimensions on which a employment are the other reasons for accepting the higher share of graduates, 16 percent and 15 percent, current job. Location and match with area of personal respectively, reported to be not satisfied at all. Despite interest are the other criteria that played a salient role some dissatisfaction, it seems that most graduates are behind choosing the current job. Figure 18 shows the satisfied with the working environment. Good relationship important reasons behind choosing the current job. While with colleagues, transparency of management, and for men, lack of available alternative is the top reason for appreciation for work from supervisors are the areas choosing the current job, for women, working conditions, where employed graduates reported higher level of stability, and proximity played a more salient role. Other satisfaction. Figure 17 depicts the satisfaction level of more job quality-related reasons such as good career all employed graduates and those who are employed in prospect, relevance to education background, and good the education sector at overall level in addition to that salaries do not make the top of the list for choosing satisfaction at another 10 different-but-correlated criteria. the job among the employed graduates. Only a quarter responded that good career prospect is one of the reasons 60. Graduates employed in the education sector for choosing the job. Only a handful (16 percent) of them expressed much higher overall satisfaction compared listed good salaries as a reason for choosing the job. 73% 73% 62% 61% 51% 51% 51% 52% 46% 42% 44% 41% 38% 35% 35% 29% 32% 27% 28% 24% 23% 18% 13% 10% Compensation and salary Interesting job content Overall job satisfaction Stability of employment/job Learning and career Opportunity to make Work environment Value of the profession to Appreciation for work from Appreciation for work from Transparency of Relationship with colleagues Education sector All sector Figure 17: Share of Employed NU Graduates Satisfied with Aspects of their Current Employment Source: College Graduate Tracer Study (Graduate Survey), 2017. 17 The OECD’s job quality framework is available at http://www.oecd.org/statistics/job-quality.htm. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 37 46% 42% 39% 38% 28% 25% 22% 17% 16% 10% No alternative available Good working condition Near from home Stable employment Matched with area of interest Good career prospect Most suitable for my education background Good recommendation by others Good salary Family member/ relative works there Figure 18: Important Reasons behind Choosing Current Job Source: College Graduate Tracer Study, 2017. Note: The scores presented here represent ‘relevant’ which are the summation of the share of those who responded either 8 or 9 or 10 of responses rating in 10-point scale in each statement where 10 stands for ‘very relevant’ and 1 means ‘not relevant at all; n = 403. 3.3. UNEMPLOYMENT 62. A disturbingly high share—46 percent—of college 64. College graduates tend to experience a high level graduates are found to be unemployed three years of job volatility and long spell of joblessness once after graduation; the unemployment rate, as calculated unemployed. Length of unemployment spell shows that in a conventional way, is around 70 percent. This share is as much as 36 percent of the unemployed graduates very high in any standard. Unemployment thus is a grave became unemployed within the last six months, which issue for graduates from NU-affiliated tertiary colleges is suggestive of frequent job turnover among college and requires special attention. This subsection discusses graduates. Another 36 percent have been unemployed the findings related to unemployment among college since last 7 to 12 months. Long-term unemployment of graduates. more than one year is also not uncommon. Around 30 percent of the unemployed graduates have been jobless 63. Graduates with humanities or social science for more than one year. Male and female experience background and from nonmetropolitan areas similar pattern of unemployment spell. Since all the experience higher unemployment rates. Figure 19 college graduates in the sample graduated in the year shows the unemployment rates by location, gender, and of 2013, it seems that a good share of unemployed have broad subject area of the graduates. Unemployment been engaged in some sort or employment or further rate is relatively lower in metropolitan areas compared education or training after graduating from college about to other locations. Out of every 100 graduates residing in three years ago. metropolitan areas who are currently active in the labor market, 58 graduates are out of employment, compared 65. Unemployed graduates seem somewhat reluctant to the corresponding rates of around 70 for graduates to adjust their expectations and job search strategy. from rural and urban, or semi-urban areas. Science Asked about what strategy they would take or are taking graduates experience marginally lower incidence of to overcome unemployment, most of the unemployed unemployment which most likely reflects better demand graduates reported that they would continue to keep for science graduates in the job market. A much higher looking for jobs that meet their expectations. Similar share share of female graduates are unemployed. of graduates reported that they would explore additional 38 77% 74% 73% 72% 71% 71% 69% 66% 66% 58% All Male Female Metropolitan Urban/ Rural Humanities Social Science Business/ Semi-urban Science commerce Figure 19: Unemployment Rate by Various Categories—Gender, Location, Broad Area of College Degree Source: College Graduate Tracer Study (Graduate Survey), 2017. education or training opportunities as a strategy to deal offer during this unemployed phase which they declined. with unemployment. The combination of these two Low salary is the main reason for declining a job offer. approaches, that is, keep looking for desired jobs and Other reasons include bad working condition, undesirable enrolling in more education/training courses if possible, position, unsuitable location, and so on. Unemployed appear to be the most common coping strategy. Naturally, graduates’ lack of flexibility in job search approach and accepting a lower pay, temporary job offers, or getting job expectation, despite having experienced prolonged into different occupations would be far less popular an joblessness, could be due to the lack of access to job market information and poor job search skills. Making relevant information available for them and training job % of graduates became search skills at colleges would be an important first step to enhance their job market readiness and flexibility. unemployed 35% 22% 14% 10% Somewhat agree Agree 9% 5% 4% 1% 1% 1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27 56% 55% 40% Number of months 32% 28% 22% 21% 16% Figure 20: Length of Unemployment Period among 10% Unemployed NU Graduates 9% 9% 5% Source: College Graduate Tracer Study (Graduate survey), 2017. I will keep looking for a job that meets my expectation I would accept lower– paying job offers I will explore different occupation I would accept shorted- term employment I would start my own business I will explore additional education/training opportunities option, though may be the one most needed in reality. Self-employment, which is often touted by policy makers as a promising source of employment and job creation, is the least considered option with only 15 percent reporting it as an option, and only 1 percent of all graduates engaged in self-employment, as discussed earlier. 66. Furthermore, despite being unemployed, college graduates often decline job offers. On average, an unemployed graduate applied to 17 jobs since the Figure 21: Job Search Strategies Followed by Unemployed start of unemployment. About three-quarters of the NU Graduates unemployed college graduates received at least one job Source: College Graduate Tracer Study (Graduate Survey), 2017. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 39 3.4. FURTHER EDUCATION AND TRAINING 67. Enrolling in post-graduate degree programs seems appears somewhat questionable whether this additional to have become a common coping strategy for tough one year of master’s course (in the case of degree pass job market, leading to a high share of graduates graduates, they need to go through a two years master’s pursuing master’s degree. Upon graduation, nearly every course) is adding significant value in terms of graduates’ graduate looked for jobs (98 percent reported that they had employability and job relevant skills, and whether they are looked for jobs). Yet, after three years of graduation, a good earning enough returns to recuperate the investment costs. proportion of graduates (one-third of the graduates) are still pursuing further education. This could be interpreted as an 69. At the same time, going into vocational and indication that further education is being used as a coping technical training programs appears to be out of the mechanism in the face of bleak labor market outcome and scope of consideration for college graduates as almost is pursued not necessarily out of enthusiasm for pursuit of no one reported having been enrolled in those courses. knowledge and research. Although there is no set yardstick Gaining technical skills would improve their chances of to estimate a desirable level of master’s qualification getting decent employment in technical jobs. However, in holders, one-third of graduates moving up to postgraduate the Bangladeshi context, vocational and technical training courses may come across as somewhat too high, especially is often seen as an inferior educational pathway than for a country with tertiary enrollment rate of just around 17 general education, which may limit the appetite of college percent. More education does not also seem to mean more graduates to take up this potentially rewarding alternative. diversified learning experience. In most cases (83 percent), the graduates are getting their master’s degree from the 83% 79% same college from which they graduated and in a subject 69% 67% area that is related to the area of study in the college; only 54% 3 percent reported that their current subject is not related to the subject area of their undergraduate degree. The 34% popularity of master’s degree may also have to do with the fact that having a master’s degree has become an entry requirement for some jobs, including getting qualified for 3% college teacher positions. 68. Securing a better job is the main motivation behind Need of better education for better job Need of technical skills & knowledge for jobs Need of development soft skills Parents recommended Change of specialization Friends encouraged Employer required pursuing further education despite the poor labor market performance of master’s program graduates. Major reasons reported were directly related to job market performance. For example, needing a better qualification for better jobs, enhancement of job relevant technical skills and knowledge, development of soft skills are reported by a good share of graduates as their motivations for pursuing postgraduate degrees. Parental suggestion and recommendation also plays a key role in decision making. Figure 22: Motivation Behind Further Education and However, given the high share of unemployment among Training master’s degree holding graduates as discussed earlier, it Source: College Graduate Tracer Study (Graduate survey), 2017. 40 3.5. EXPECTATION AND PERCEPTIONS ABOUT JOBS AND JOB MARKET 70. For graduates to have successful job search results, the second most preferred occupations. Naturally, supply of it is important that they have expectations that are in these types of jobs is quite limited and highly competitive. line with the job market reality and good understanding Finance and accounting jobs are also preferred about jobs that they are interested in. This section occupations for college graduates as they tend to be better examines the expectation and perceptions that college remunerated occupations. While these preferred jobs are graduates have about their future jobs and job market, concentrated in a few occupational categories, jobs that drawing on the responses of the unemployed and currently are more readily available and important for the economy studying graduates. seem to be perceived far less attractive to college students, including business professionals, ICT professionals, and 71. Graduates’ preferences on occupation seem sales and marketing staff. Some widely demanded jobs like highly skewed toward public sector jobs and a small hospitality workers and technicians did not even make the number of occupation categories. First, almost everyone list in Figure 23. Limiting the list of desirable or acceptable (90 percent of unemployed or studying graduates) are jobs too narrowly would never be a good job search interested in the public sector jobs in the government. strategy for anyone. This may not be a very healthy and productive expectation when the public sector can provide only so many jobs in 72. The commonly held view among the Bangladeshi the job market and thriving industries are needing more society that college graduates choose the education manpower. Figure 23 shows the preferred occupations of profession as a last resort of employment may not unemployed and graduates pursuing further education. resonate with the reality in many cases. Education is Teaching is the most desired occupation. More than two- the sector where the highest share of college graduates is thirds of them reported teaching as their most preferred employed. Among the employed graduates, 43 percent occupation. It is surprising to see this much of popularity of are working in the education sector and 38 percent are teaching profession among tertiary graduates considering involved in teaching. These graduates working in education these are not teacher training institutes. This is also a strong sector reported much higher level of overall job satisfaction indication of perceived lack of other viable and high-quality compared to others. The majority of currently unemployed job opportunities outside of public and teaching arenas. graduates or those who are engaged in further education Jobs in public administration and managerial positions are reported teaching as their preferred occupation. 71% 69% 55% 53% 53% 50% 38% 33% 34% 32% 10% 12% 11% 10% 12% 10% 3% 4% 5% 4% 5% 5% 5% 3% 3% 2% 2% 2% Teaching professional Public administration Managerial Finance and accounting worker/professionals Social worker Service worker Business professionals Health technicians/ professionals Agricultural, forestry, fishery workers ICT technicians/ professionals Legal, social, cultural professionals Armed force occupations Clerical staff Sales and marketing staff Unemployed Currently student Figure 23: Preferred Occupation by Graduates Currently Unemployed or Pursuing Further Education Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: Multiple responses were allowed. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 41 73. There exist substantial gaps between the salary career guidance could be responsible for that. This strongly expectations of graduates and the reality. Graduates calls for much greater emphasis on job placement services expect to secure a job after completion of the current at colleges, which can provide necessary information and degree with an average salary of around BDT 26,000. This services to college students and graduates to prepare them turns out to be quite far from the reality and more than for the job market. double of the current monthly salary of the employed graduates, that is, BDT 11,814. 75. Despite the challenging job market outcomes, college graduates largely remain optimistic about 74. Graduates seem out of touch with the prevailing their job prospects, with strong belief in the value of conditions of the current job market. An unusually college degrees. Despite the high unemployment rate, high proportion (9 out of 10) of graduates are interested only one-third of the graduates who are active in the labor in finding government jobs. In fact, only 13 percent of market reported the lack of job opportunities for college the employed college graduates are currently working in graduates as a major issue. The majority of them also agree government jobs. This clearly means that most of them that college degrees are highly valued by employers. They would fail to find jobs in the public sector in the end, seem less certain about employers caring about skills and and that many of the unemployed or currently studying knowledge that they gained through college education. graduates are heading to job search cul-de-sac. Graduates This perceptional gap may be due to their own low who are highly interested in teaching jobs also have very expectations about education services at colleges though high salary expectations though salary in the education as a qualification on one’s resume, they believe college sector is one of the lowest. This discrepancy between degrees are regarded highly in the society. This may lead reality and expectations highlights college graduates’ lack them to pay more attention to passing the examinations of awareness with respect to what is available and what to than to the actual knowledge and skills gains during their expect in the job market. Lack of access to information and time in college. 64% 40% 45% 45% 35% After all, using Employers care College degrees are It is challenging There are not many personal and family about types and valued highly by to compete with job opportunities for networks in the levels of skills and employers university graduates college graduate most effective job knowledge we search activity for us acquired in the college Figure 24: Perception about Labor Market of NU Graduates Who Are in the Labor Force Source: College Graduate Tracer Study (Graduate Survey), 2017. 42 GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 43 44 4 HOW DO GRADUATES AND EMPLOYERS SEE COLLEGE EDUCATION? 4.1. GRADUATES’ FEEDBACK ON QUALITY AND RELEVANCE OF COLLEGE EDUCATION 76. This section focuses on the assessment of quality and relevance of college education based on the graduates’ feedback on a range of aspects relevant to quality and usefulness of learning and skills acquired at colleges. Because graduates were direct beneficiaries of education services rendered at colleges, and they are now aware of the labor market realities, their 57% opinion regarding weaknesses, strength, and relevance of college education can provide important direction for upgradation of teaching and learning environment at colleges to achieve better outcomes. Moreover, knowledge about the level of quality and relevance of college education would be an essential background information to properly contextualize the findings on employment outcomes of graduates. Overall, the feedback suggests that college students are not satisfied with the current state of the quality and Overall, I learned a lot of relevance of college education. new skills and knowledge in college 77. Overall, graduates’ opinion about value addition in knowledge during Figure 25: Graduates’ Overall student years is underwhelming. Only a little over half of the students agree Assessments about Learning that they have learned a lot of new skills and knowledge either through classes and Skills Acquisition in College in college or off-campus activities during college years. This is disappointing as Source: College Graduate Tracer Study, college education is supposed to teach new skills and improve the knowledge 2017. base of the students. Note: The share among currently employed graduates who agree to the statements. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 45 78. Graduates have strong reservations about the relevance of college education to labor market needs. 45% First, only a fifth of the employed graduates are engaged 23% in jobs that are related to their fields of study at college. 20% 10% This indicates the low relevance of college education and the presence of serious mismatches between what colleges offer in their courses and the demands of job markets. It is highly likely that college students were not Specialty of current job is related to the field of study Skills/knowledge learned at college have been useful for work ICT skills learned at college have been useful for work Soft skills learned at college have been useful for work able to choose the fields of study that are demanded in the job market because colleges do not have them in their course offerings and/or graduates were not aware of or cared about job market demands upon entry to colleges. While in principle academic disciplines in general higher education do not always have direct matches with career choice of graduates, poor discipline-career matching Figure 26: Graduates’ Assessments about Relevance of coupled with poor employment outcomes would cast Education at Colleges serious doubts about the overall relevance of college Source: College Graduate Tracer Study (Graduate Survey), 2017. Note: The share among currently employed graduates who agree to the education in Bangladesh. Students’ assessment about statements. relevance of soft skills, though more positive than the views about other technical skills, does not also seem so regarding teaching and learning at colleges. Teaching and encouraging as less than half of the graduates support learning facilities and equipment seem inadequate and their usefulness for their work. outdated. Only 35 percent graduates agreed that their 79. Knowledge and skills acquired at colleges are seen colleges had enough teaching and learning equipment to have low application at work. Only one-third of and 24 percent agreed that those pieces of equipment employed graduates reported that they have been able were modern. Teaching and learning facility and to apply the knowledge and skills learned at colleges equipment are in urgent need of upgrading. usefully to their work. Low level of knowledge and skills 82. Teachers’ teaching capacity, especially in application would be naturally triggered by the lack of pedagogical skills, seems to need more improvement. learning of new knowledge as well as the low matching Regarding teaching methods, for instance, only 12 between the academic and job choices. However, it is also percent of graduates said that teachers were effectively likely that college graduates failed to acquire practical utilizing ICT in teaching at college. Views on teachers’ knowledge and skills during their time of college study. 80. Colleges seem to be lagging in the teaching of ICT and soft skills. In the increasingly globalized world, the skills needed for work is changing at a fast pace. ICT skills 53% 35% and soft skills18 have become basic skills needed for jobs 24% 12% that tertiary education graduates are likely to pursue. Only 1 out of 10 currently employed college graduates reported to have learned ICT skills at college that provided good basis for computer skills for their current jobs. Graduates Sufficient teaching & learning equipment Modern reaching & learning equipment Effectively utilizing ICT in teaching Academic knowledge of teachers were sufficiently up-to-date have relatively more positive perception about soft skills (for example, communication, team work, and problem solving) they learned at college, though it is still far from satisfactory—only 45 percent provided positive feedback about the usefulness of soft skills they learned at college. Figure 27: Graduates’ Assessments about Quality of 81. Quality of teaching and learning environment is Education Services at Colleges deemed unsatisfactory, and teaching methods need to Source: College Graduate Tracer Study (Graduate Survey), 2017. be updated. Figure 27 shows the share of graduates who Note: The share among all graduates who agree to the statements. either moderately or strongly agreed to the statements 46 subject knowledge are substantially more positive though same time, however, around half of them do not seem still only half of the graduates were satisfied. Teacher to have strong opinions about them (neither agree nor training, especially on pedagogical skills, including use disagree). Anecdotal evidence shows that many college of ICT, would have high positive impact on the quality students do not attend classes regularly, which may of teaching in colleges. Colleges report that teachers explain this apparent absence of opinions regarding do receive training opportunities from time to time quality of learning. (see Annex 1). Training contents may not be adequately focused on pedagogical skills especially in using ICT in teaching. Agree Disagree 83. Learning at college is deemed too examination oriented, but opinions about the quality of assessment appear mixed. More than half of the graduates agreed that students spent too large a share of their learning time in preparing for examinations. Examination culture— 54% overreliance on written exam—is nothing unique to 36% 28% the college sector in Bangladesh rather it is prevalent 20% at all levels of education. However, tertiary education 13% 3% institutions should move away from such examination culture to make more room for non-rote learning to Spent too much time for preparation for examination College education was rote learning College exams lack creative answering promote critical thinking and practical knowledge and skills. Interestingly, though graduates agreed that students spend too much time for exam preparation, their opinion is mixed about college education being associated with rote learning and exams not promoting creative learning as higher shares of graduates disagreed with those notions. Emphasis on rote learning rather than imparting practical skills has been reported as one of the Figure 28: Graduates’ Assessments about Learning challenging features of teaching in affiliated colleges in Experience in College other countries. Perhaps, an examination framework in Source: College Graduate Tracer Study (Graduate Survey), 2017. use in Bangladesh is less memorization oriented. At the Note: The share among all graduates who agree/disagree to the statements. 4.2. EMPLOYERS’ FEEDBACK ON QUALITY AND RELEVANCE OF COLLEGE EDUCATION 84. To improve the employability of college graduates, 85. Employers who were surveyed were picked it is important to understand how they are perceived and randomly from the pool of employers of the randomly valued by those who hire them, what skills are in demand, selected sample of college graduates. Figure 29 what the employers are looking for while hiring, and gives the distribution of employers surveyed by major based on that which skills of college students need further industries. It is not surprising that about 40 percent of attention and improvement. In that context, this chapter employers are in the education sector. Manufacturing discusses the practices and perception of employers, who accounts for one-fifth of the employers surveyed. have hired college graduates, regarding issues related to Within manufacturing industries, more than half of the employment and employability of college graduates. employers are in ready-made garments, textiles, and GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 47 food products. The majority of the surveyed employers 86. For majority of employers, the degree itself was (97 percent) are formal sector employers which have an the main motivation to hire a college graduate, official registration number to the government, indicating and having a master’s degree does seem to make that college graduates are usually employed in the formal a difference in job chances. College qualifications sector. (bachelor’s or master’s degrees from the NU) are in themselves an important motivation for many employers 40% 20% when hiring college graduates. This is an indication that Education Manufacturing many of these employers, especially employers in the education sector, have explicitly or implicitly an education qualification criterion to screen job candidates, with the minimal qualification required being college degrees. Employers also seem to pay attention to academic performance during college as measured in the GPA score, having a master’s degree, and subject area of study, which corroborates the analysis earlier on factors affecting the chance of getting employment. It seems generally the case that the education sector employers tend to give greater importance to these education-related factors than most of the noneducation employers. Beyond these 10% 11% academic factors, soft skills were the next factor identified Others Finance & insurance by the employers as important. Work experience is also 3% seen as an important factor for recruitment decisions, ICT 10% more so by noneducation employers. Again, colleges 8% Human health have little to offer here. Recommendations from colleges Wholesale and retail trade & social work have negligible importance in the recruitment process of Figure 29: Employers of College Graduates Surveyed, by college graduates. Sector Source: College graduate Tracer Study, 2017; Note: n= 235. Education-related Experience-skills- and other-related 81% 53% 66% 56% 59% 46% 57% 52% 5% 5% 43% 57% 38% 11% 32% 11% 6% 2% 4% 0% Edu qualification level Having a Master’s degree Academic GPA Depart/subject of study Recommendation by college Soft-skills Work experience Employee recommendation Personal informal network Political affiliation Education jobs Other jobs Figure 30: Importance of Various Factors behind Hiring the College Graduate Source: College Graduate Tracer Study (Graduate Survey), 2017. 48 8.5 7.7 7.5 7.3 7.3 7.2 7.1 7.0 6.7 6.5 Reading and writing in Bangla Work attitude Team working skills Theoretical/ technical knowledge needed for the work Problem solving skills Basic numeracy Management skills Interpersonal communication skills Computer skills English language skills Figure 31: Employers Perception about Graduates’ Level of Strength on Various Skills Source: College Graduate Tracer Study (Employer survey), 2017. Note: The score/s presented here is/are the averages of responses rating on a 10-point scale in each category of skills, where 10 stands for very strong and 1 means very weak. 87. Employers acknowledge college graduates are important in the coming days. Thus, special attention strong in communication in Bangla, possess decent needs to be given to enhance the level of quality related work attitude, and team working skills, while English to these skill sets. language and computer skills are their weaker points. Employers were asked about their perception on the level 88. Employers would like colleges to strengthen of strength of college graduates regarding different skill training on ICT, English language skills, and key sets. Reading and writing in Bangla has been rated most higher-order thinking skills such as communication favorably by employers, as shown in Figure 31. Employers’ skills, problem-solving, and teamwork skills. Given the perception about other skills seems to be satisfactory in technological advances, communication using various general. However, it is not a surprise that English language modes has become part of the skills set essential to and computer skills were viewed as less of strengths of perform and conduct tasks in the increasingly globalized college graduates. Given the changing nature of jobs in business environment. As Bangladesh is becoming an the globalized world, English language, communication, integral part of the global value chain of production and and computer skills will become more and more business, the demand for all sorts of communication 71% 67% 63% 59% 58% 48% 39% 35% 28% 28% 20% Use if ICT Communication skills English skills Problem solving skills Team working skills Technical skills needed for the work Management skills Theoretical knowledge relevant to the work Reading and writing in Bangla Numeracy skills Applied skills Figure 32: Employers View on Skill Areas Colleges Should Educate and Train Students More Source: College Graduate Tracer Study (Employer survey), 2017. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 49 54% 50% 49% 47% 45% 43% 40% 31% 17% 15% 12% 3% 3% Computer science / CIT Finance & Accounting English Science subjects Marketing Management Mathematics & Statistics Social Science Engineering Agriculture subjects Humanities & Arts Law Procurement and logistics Figure 33: Subject Areas in Demand of Employers Source: College Graduate Tracer Study (Employer survey), 2017. skills, whether that is through ICT or English language, unfortunately does not seem to have much demand will only increase over time. And that inevitable trend among employers. Social science, another popular study reflects on employers’ view on skill areas that colleges subject at colleges, does not also seem to be strongly in should focus on educating and training their students demand. Coordinating the supply of students in various more. Communication skills are more important for subjects based on market demand could improve the college graduates as they focus less on technical subjects. employment outcomes of college graduates. More than half of the interviewed employers reported that colleges should also focus on problem-solving skills 90. Colleges seldom go into partnership with and teamworking skills to improve the overall quality of employers to promote practical learning and enhance college graduates. employability of students. Out of 235 employers surveyed, only 10 entities (4 percent) reported having 89. Computer science, finance and accounting, English, some type of relationship with colleges. The reported and science subjects are the most demanded subjects nature of the relationship is in the form of providing guest in the job market for college graduates, while social lectures or personal relationships with the principal. Only science and humanities are far less in demand. Employers three employers reported that they have partnerships for believe that business and specific skills-related subjects recruitment and only two reported having a partnership such as computer science, finance and accounting, for apprenticeship program with colleges. This is truly marketing, management, mathematics, and statistics a missed opportunity for both colleges and employers. also have good demand in the market. As discussed in Having solid partnerships with industries would play a the earlier chapter, however, the highest share of college pivotal role in increasing the employability of college graduates complete courses in humanities and arts, which students and improving their relevant skills. 50 GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 51 52 5 SUMMARY OF KEY FINDINGS AND POLICY IMPLICATIONS 5.1. KEY FINDINGS 91. Affiliated colleges of the NU in Bangladesh serve secondary graduates of average academic skills from decent family backgrounds to achieve tertiary education qualifications. Academically, average students from relatively educated family backgrounds are the main beneficiaries of the NU tertiary colleges which are expected to provide valuable skills necessary for labor market transition. Secondary school graduates with best test scores tend to enroll in universities, which are far more competitive and have smaller intake capacity. Enrolling about 65 percent of all tertiary students each year, the NU colleges play a crucial role in shaping the skills and the quality of the white collar workforce of Bangladesh. Thus, modernizing the standard and skills of professional labor force requires improving the quality of college education, especially in today’s increasingly technology-intensive globalized economy. 92. Current employment outcomes of college graduates are way below satisfactory, throwing the relevance of college education into question. After three years of graduation, close to half of the graduates are unemployed. It is not completely unlikely for college graduates to have a high share of unemployment as most of them come from relatively decent financial backgrounds and thus may have higher reservation salary. Yet, even after taking that into consideration, this share is very high compared to the labor market outcome of the general population. Unemployment rate among the GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 53 NU graduates active in the labor market is 71 percent, industry and employment prospects but also strengthen national unemployment rate for the age group 18 to 24 college graduates’ employability by providing them with is 10.1, and for the tertiary educated, the unemployment valuable work experience that employers are looking for. rate is 9 percent.19 Even among those who are employed, overall level of job satisfaction is low; only 27 percent of 94. Despite the high unemployment rate among the employed graduates reported being overall satisfied college graduates, there exists unmet demand among with their current job. Among the three basic criteria employers for an educated skilled workforce, which of job quality—job security, earnings, and working college education has been unable to fill. Unfortunately, environment—the employed graduates reported low level college graduates are often not able to meet the demands of satisfaction in terms of salary and job security. High of labor market. They often lack in relevant skills valued unemployment rate and low overall satisfaction level by employers—skills mismatch—and are not fully aware among the employed are beyond ‘not normal’, indicating of the labor market reality and job search options to the graduates’ need for ‘transition from education make most sensible decisions in choosing career options. to employment’ support that can be facilitated and Although this study is unable to assess the demand- expedited through helpful policy interventions and their side issues of the labor market in depth, judging from proper implementations. the responses of employers and current situation of graduates, the core issue seems to lie with ensuring the 93. Graduates’ level of satisfaction over the quality and quality and relevant tertiary college education and skills relevance of the NU college education and training of college graduates, that is, supply-side challenges. The is generally low. Only a little over half of the graduates NU colleges urgently need to step up to meet the skills agreed that they have learned new skills and knowledge demand and bring optimal equilibrium in the market. through classes in college. The knowledge and skills that Employers value soft skills and prior work experience in graduates learned in colleges have low application at addition to academic qualifications and would like the work, which makes the NU college education less relevant colleges to strengthen training on ICT, communication, for labor market. In addition to the traditional subjects and language skills. College graduates are strong in being taught, colleges should teach students some basic Bangla, possess suitable work attitude, and team working soft skills that would help the graduates navigating the job skills. By improving ICT skills and English language and market better and make them more productive workers. communication skills, college graduates may position Successful collaboration with relevant industry can not themselves in a better position in the job market and fill in only provide practical knowledge about working in such a good share of the skills gap that exists in the workforce. 5.2. RECOMMENDATIONS 95. Bangladesh’s labor market faces significant skills 5.2.1. INSTITUTION-LEVEL POLICY ACTIONS shortages and the NU-affiliated colleges have a big role to play to narrow the existing skills gap. Based on 96. Enhance the use of ICT in teaching, provide ICT the findings of the tracer survey that incorporated views skills training, and upgrade ICT facilities. Bangladesh and opinions of the graduates, representative of colleges Skills for Tomorrow’s Jobs (World Bank 2018) highlights and employers, this report provides both national- and the growing importance of ICT knowledge and skills institution-level policy recommendations. for both present and future jobs even in nontechnical 19 Based on Labour Force Survey 2015–2016. 54 industries. ICT has been identified as the number one outcome. Currently, the NU-affiliated colleges do not skills areas that employers believe colleges should have such collaboration though its importance has been educate and train students more. In that context, ICT acknowledged by colleges as they identified lack of such needs to be incorporated in college education for collaboration as one of the main challenges they face. improving the students’ overall skill level and making Under the guidance of the NU, colleges should attempt college education relevant for today’s labor market. To to pilot joint programs with local industries such as guest achieve this goal, first, colleges need to invest more in ICT lecturers, industry visits, short-term internship, industry- equipment and upgrade technical skills of teachers on led skills training, and so on. Visiting lecturers from ICT use. Colleges can set up and offer ICT and computer neighboring companies would add a tremendous value learning camp at the beginning of the semester for to the learning experience of college students. Through both students and teachers to encourage use of ICT such programs, students would be allowed to gain some throughout the academic year. Inadequate teaching and industry experience before graduating, which would learning facilities, especially facilities related to science, be helpful not only while searching for jobs but also to can hamper both quality teaching and learning. Thus, reshape their expectations about jobs and skills needed. upgrading of teaching and learning facilities are needed to enable colleges to offer quality education. 100. Set up job placement support services and carrier counselling. Both services are urgently needed to tackle 97. Provide soft skills training and English the serious bottlenecks that college students would face communication skills training. Soft skills, also in the job market. What colleges can and should do as known as noncognitive skills, such as problem solving, job placement support include the following: (a) provide critical thinking, and communication have increasingly job market information of graduates; (b) provide job become essential in today’s dynamic job world and are search skills training and counseling, including career highly valued by employers. On average, employers’ development, CV preparation, interview skills, networking; perception about college graduates’ problem-solving (c) gather and share job opening information in the local and communication skills are not very high. Colleges job market; (d) organize job fairs and career seminars to should introduce a special training program to upgrade connect students/graduates with potential employers; soft skills of their students. English language is another and (e) provide information about available skills training area where college graduates are weak and potentially courses in the locality. Carrier counselling can influence greatly rewarding if trained appropriately. Curriculum and students’ attitude about job opportunities, which would facilities can be upgraded to improve practical English be essential to reduce the expectation gap and may language proficiency of students. improve the flexibility in their job search. For efficient and effective services, colleges will need to create a post 98. Conduct periodic institution-level graduate for a career counselor job placement expert and hire tracking. A graduate tracking system needs to be accordingly. developed and institutionalized for more evidence-based job placement support and potential networking with 101. Initiate institutional quality assurance activities graduates. An institutionalized active graduate tracking for overall quality monitoring and enhancement. system can provide valuable information and direction for Conducting quality assurance activities at colleges can effective job placement service. Analysis of employment ensure a certain level of quality for college education and data of past graduates would offer valuable direction improve the institutional accountability for education for identifying the best strategy regarding industry to services. The first step to achieve that would be to target, people to contact, and so on. Graduate tracking initiate a system of institution-level self-assessment. can be implemented using digital communication tools The NU needs to design feasible institutional self- like emails and social network services or using online assessment processes and provide guidance and capacity services such as online survey tools or web-based development to colleges on the implementation of graduate tracking systems. self-assessment exercise and institutional development planning. Periodic student feedback practice should also 99. Initiate partnership with local enterprises to be initiated at colleges to give students an opportunity improve the quality and relevance of learning to reflect on their learning and provide their college with experience at colleges. Developing effective industry constructive feedback. collaboration for learning activities will add tremendous value to graduates’ employability and employment GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 55 5.2.2. SYSTEM-LEVEL POLICY ACTIONS contents and methods to latest skills demands. As the guardian of academic affairs of the largest share of tertiary- 102. Enhance the relevance of learning outcomes and level graduates, the NU has a tremendous responsibility curriculum of all the subjects in consultation with the to ensure their graduates are oriented toward specialties employers and industries. The teaching contents of the that are in demand in the job market. The NU should have NU-affiliated colleges are fully and centrally managed by a designated unit and high-ranking staff in its organization the NU. Curriculum contents for new courses would be which would deal with the issue of employability of college developed by qualified subject experts—often university graduates and promote labor market feedbacks for its professors—commissioned by the NU. The existing college education services. Annual employer feedback curriculum occasionally goes through revisions though it workshops and graduate employment outcome surveys is done in a more ad hoc manner. However, involvement would be a good starting point. of employers and industry representatives in curriculum development and revisions has been limited, if any. 105. Develop a sector policy to deal with graduate The first step for ensuring the job market relevance of unemployment issues head-on and adopt system- teaching and learning in colleges would be to deepen the level employability indicators to monitor job involvement of employers and industry representatives placement outcomes and support activities. The NU- in designing the definitions of learning outcomes and affiliated colleges currently appear to lack in any facility curriculum for all subjects. Learning outcomes of all for, experience in, or appetite for actively supporting subjects under the NU should be agreed with them to job placement of their graduates. One fundamental ensure all core skills needed to perform job requirements issue is that there is no clear government policy in are included, such as language skills, computer skills, data place to instruct and guide college institutions to have analysis, and team work skills, along with job-specific provisions for such facilities and services, largely leaving technical skills where relevant to the subject. the matter to their own devices. Given the dire situation of unemployment among college graduates, there is no 103. Provide affiliated colleges with extensive teacher other choice for the NU and MoE but to urgently develop training especially in pedagogical skills for active a policy strategy to tackle high unemployment of college learning and ICT utilization in teaching. The NU- graduates and build the capacity of all the affiliated affiliated colleges are blessed with high-quality teachers in colleges to provide meaningful support for better job terms of educational background and academic content placement. Special provision should be allowed to knowledge—at least half of the graduates positively agree public colleges to accommodate additional needs for that academic skills and expert knowledge of teachers this purpose. Sectorwide indicators to monitor graduate were sufficiently up-to-date. Yet, their pedagogical skills employability and employment outcomes for the NU- need to be strengthened further, especially as new affiliated colleges, both public and private, should be learning methods such as active learning and the use developed and implemented for colleges to keep track of ICT in teaching have become important instruments of and be accountable for employment outcomes of to effectively deliver the teaching contents and train graduates. Some of these indicators would include sector- students’ soft skills. Active learning methods are known level and intuition-level employment rate, presence to be an effective tool to give students opportunities to of job placement strategy and unit at institutions, engage with problem-solving teamwork activities and implementation of graduate tracking, number of job fairs develop critical thinking and communication skills. Those organized at institutions, employers’ satisfaction about skills are central to the job competencies that employers skills and knowledge of college graduates, and so on. are looking for from tertiary education graduates. The NU and NAEM are already providing training to teachers 106. Encourage greater student enrollment in of both public and private colleges. Including use of more market-demanded courses such as computer ICT in the training curricula is needed for more effective science, STEM, English, finance and accounting, knowledge delivery of teachers. Focus should be given and management in the NU-affiliated colleges. The more on how teachers can encourage students to results of this survey clearly demonstrate that employers’ participate more and play an active role in improving preferences of expertise of job candidates are not well students’ soft and language skills. aligned with the current subject-wise distribution of student enrollment in colleges. Employers tend to 104. Establish a central-level labor market feedback prefer to see more tangible skill sets, clear expertise, system to enhance the responsiveness of teaching 56 and science-oriented knowledge from their job seekers, than individual performance. Nongovernment colleges including ICT, STEM, English, and accounting skills. The may have a greater intrinsic incentive to strive for better least demanded include humanities and social science, services to attract students; however, they are often where many college students are enrolled. In deciding severely constrained with their resources for investment, seat capacities and approving course openings, the and promotional opportunities for teachers are more NU and the MoE should utilize the data and knowledge limited. Neither government or nongovernment colleges gained from employer feedback and encourage have academic autonomy to introduce innovations in enrollment in those more market-demanded courses their teaching practices. Students’ academic interests by providing such information publicly to future college and learning efforts tend to be geared toward mastering students and their families. how to pass examinations, causing them to be frequently absent from day-to-day classroom activities. To break 107. Strengthen system-level and institutional through such a stifling environment, it is essential that capacity for quality assurance and accountability the affiliated colleges are introduced to an incentive practices. As indicated by the feedback that employers mechanism which aims to promote institutional do not expect much from what college graduates learned, improvement and academic excellence. Globally and college education in Bangladesh may be suffering from in the university sector of Bangladesh, performance- a quality crisis and an image crisis. Overall uplifting of based institutional grant system has proven to be an the quality of college education and being accountable effective means to provide institutions and academics for student outcomes are needed to improve on a long- with much-needed resources for a range of improvement term basis the employability of college graduates and activities while at the same time ensuring transparency the reputation of college education in Bangladesh. The and accountability for results. Introducing a performance- NU needs to take strong action to develop system-level based institutional grant system where colleges would and institutional capacity for quality assurance and compete for access to additional resources would accountability practices, including self-assessment, offer a valuable opportunity to incentivize and finance student feedback system, institutional development institutional improvement efforts at affiliated colleges. planning, college benchmarking, publication of graduate outcomes, public consultations, and so on. 110. Review the system of affiliation of colleges to create a higher education system that is more job 108. Strengthen the NU’s capacity and system for market responsive. It is undoubtedly impressive to monitoring and supervision of the quality of education see the affiliated colleges provide higher education to a and teaching performance at the affiliated colleges. large number of students from the lower socioeconomic The NU’s college inspection division, which is primarily strata. Yet, given poor graduate employability and low responsible for undertaking quality oversight on the satisfaction over skills acquisition, policy makers might affiliated colleges, needs to be staffed with competent need to take a close look at a range of system features and officials and resources and trained in modern monitoring question some of the basic premises. For instance, would methods and tools. Quality supervision of all the affiliated it still make sense to affiliate the colleges with varying colleges is a gigantic undertaking—an almost impossible degree of capacity under a single affiliation rule? Would it task given the current institutional capacity of the NU. be sustainable and reasonable in the long run to continue However, it is also the critical mandate of the affiliating to affiliate over 2,000 colleges to a single university? universities. Significantly more investment is required to Would it make sense to give a greater share of academic implement strong quality supervision of colleges. autonomy to the affiliated colleges? Fundamental 109. Introduce performance-based grant system to questions like these would need to be explored to see incentivize excellence in teaching and learning and how the affiliated college system can be reshaped in the improve teaching facilities at the affiliated colleges. mid to long term toward more flexible, market-responsive In the affiliated college system, college institutions, higher education system. The preparation process of teachers, and students receive little incentives to promote the college sector development strategy currently under excellence in teaching and learning. The government way through the World Bank-supported CEDP gives colleges receive funding from the government through stakeholders and academics an excellent forum for traditional incremental budgeting while teachers are evidence-based policy discussion on future reforms and civil servants on the government payroll. Promotion is improvement of governance and management structure primarily granted to reward seniority in service rather of the affiliated college system. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 57 REFERENCES 58 Awan, M. S. 2016. Affiliated Colleges (Performance, Value of the Affiliation Mechanism). Islamabad: Higher Education Commission. BANBEIS (Bangladesh Bureau of Education Information and Statistics). 2017. Quarterly Labour Force Survey Bangladesh 2015-16. Dhaka, Bangladesh Farole, Thomas, and Yoonyoung Cho. 2017. Jobs Diagnostic Bangladesh. World Bank, Washington, DC. Kulandaiswamy, V. C. 2006. Reconstruction of Higher Education in India. The ICFAI University Press. Lee, L. S. Y. 2011. “Affiliated Colleges in South Asia: Is Quality Expansion Possible?” Discussion Paper Series, World Bank, Washington, DC. Toufique, K. 2014. “Labour Market Transition of Young Women and Men in Bangladesh.” Work4Youth Publication Series 13, International Labour Office, Geneva. University Grants Commission. 2015. Annual Report 2015. Dhaka, Bangladesh. World Bank. 2013. An Assessment of Skills in the Formal Sector Labor Market in Bangladesh: A Technical Report on the Enterprise-Based Skills Survey 2012. Washington, DC. ———. 2014a. How does the Short-Term Training Program Contribute to Skills Development in Bangladesh? A Tracer Study of the Short-term Training Graduates. Dhaka, Bangladesh. ———. 2014b. “A Study on National University and Affiliated Colleges in Bangladesh.” Discussion Paper Series, World Bank, Washington, DC. ———. 2017. Tracking Survey on Graduates of Polytechnics in Bangladesh: Employability of Post-Secondary TVET. Dhaka, Bangladesh. ———. 2018. Bangladesh: Skills Strategy for Jobs. Education Global Practice, Dhaka, Bangladesh. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 59 60 APPENDIX: 1 Institutional Capacity of Colleges 1. Information gathered through the interviews with principals and vice principals shed light on the current situation surrounding job placement services, teaching force, and other challenges that colleges might face. This appendix provides the findings from the institution-level information taken from the sample of 35 colleges: 25 government and 10 nongovernment. TEACHING AND LEARNING FACILITIES 2. Facilities and equipment for teaching and learning offered at colleges are generally poor and vary significantly by ownership. Typically, government colleges which cater to substantially larger numbers of students have fewer facilities per student, while nongovernment colleges offer more facilities per student. The average number of students per sampled college is 10,466. The average number of students in government colleges are four times the number of students in a nongovernment one: 13,261 against 3,477. In the sampled government colleges, there is one computer for every 250 students while in nongovernment colleges, the ratio is around 1:100; in government colleges, one library is used by over 6,000 students while in nongovernment ones, a library is used by 2,000 students. The number of students per classroom is more than three times in government colleges than in nongovernment ones; on average, there are 270 students per classroom in sampled government colleges, while the number of students in the sampled nongovernment colleges is 80 per classroom. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 61 CAPACITY OF TEACHING STAFF of college teachers, these shares of trained teachers are indeed encouraging and suggestive of the presence of recurrent and systematic teacher training for college PRINCIPALS’ QUALIFICATIONS teachers. There is a high variation among colleges, 3. All the principals of the sampled colleges are however. In one college in the sample, all the teachers experienced and at least master’s degree holders, received NAEM training; on the other hand, in seven with 15 percent possessing a PhD. An average principal colleges no one participated in that training last year. of the sampled colleges is 56 years old with five years of experience as a principal and 23 years of teaching NAEM NU experience before becoming a principal. Among the sampled colleges, 15 percent have a female principal. 4. There exist some public-private differences in 17% principal’s academic qualifications but not much 13% difference in terms of their overall experience. 9% 10% 9% The share of PhD degree holder principals is higher in 4% government colleges (17 percent), whereas10 percent of the nongovernment colleges have principals with PhD degree. There is no difference between a government and All Public Private a nongovernment college principal once we consider total years of experience in teaching and leading the colleges Figure 1.1: Share of Teachers Received Training by NAEM as principals. However, principals in nongovernment and NU during the Last 12 Months Source: College Graduate Tracer Study (College Survey), 2017. colleges possess less experience in teaching and more in leading as principals. On average, in our sample, nongovernment college principals have been working as JOB PLACEMENT SERVICES PROVIDED principals for 10 years before the survey; in government BY COLLEGES AND KEEPING TRACK OF colleges, principals on average have 3 years of experience GRADUATES as principals, suggesting more stable leadership at nongovernment colleges. 7. Colleges, in general, do not provide job placement services. Based on the survey result, only 3 government colleges out of the sampled 35 colleges provide some limited TEACHERS’ QUALIFICATIONS job placement services to students. These three colleges 5. Teachers in the NU-affiliated tertiary colleges are neither have any job placement unit for graduates nor any academically well qualified; almost all teachers in staff assigned to provide the service. The limited services colleges possess master’s degree. Out of 35 colleges in the these colleges provided during the last one year before the sample, only 3 have teachers without a master’s degree survey was conducted was in the form of career counseling and even in those 3 colleges, the share of teachers with and advice, job fairs, and career seminars or workshops. bachelor’s degree is less than 3 percent. On the other International evidences show that job placement services hand, 83 percent of the sampled colleges have at least can have significant positive impacts on graduates’ one teacher with a PhD degree and 30 percent of the employment outcome. Establishing job placement units colleges have five or more teachers with a PhD degree. On in colleges to provide adequate and effective services to average, around 6 percent of the teachers of the sampled students and graduates for job search would be a step colleges have PhD degree. Thus, it seems that hiring toward better employment outcomes for college graduates. teachers with appropriate academic qualifications is not a 8. Keeping track of graduates is not a customary challenge for colleges. practice among colleges, especially among the 6. College teachers seem to be exposed to training government colleges; those who track graduates occasionally. Around 13 percent and 9 percent of all generally report poor employment performance among teachers of the sampled colleges received training in the their graduates. Among the sampled colleges, 20 past 12 months from the NAEM and the NU, respectively, percent reported keeping track of employment status and the rate of trained teachers is higher among teachers of graduates. Nongovernment colleges seem to do a from government colleges. Considering the sheer number better job in collecting graduates’ information. Half of 62 the nongovernment colleges reported that they keep 11. The five main challenges identified by the sampled updated information of their graduates. In such cases, colleges are related to gap in institutional capacity automated systems and phone calls are the main vehicles and lack of industry cooperation. Only one college has of collecting information from graduates. Low incidence some industry collaboration going on as discussed earlier. of employment has been reported by the colleges that do Yet, this lack of industry cooperation has been identified keep track of employment outcomes of their graduates. as the major challenge by the colleges. They may be Based on their reporting, over the past five years, around aware about the benefits of having industry collaboration 30 percent of all graduates find jobs. Their self-reported to improve student learning and enhance knowledge statistic appears to be somewhat rosier compared about labor market needs; however, for various practical to the finding of this survey, which is not surprising; reasons, it may not be easy for colleges to establish nevertheless, their own accounts of graduate outcomes industry collaboration. Lack of science laboratories, are also not satisfactory by any standard. teacher vacancy, overcrowded classrooms, and shortage of ICT equipment for teaching and learning are the other 9. Industry collaboration almost does not exist among four major challenges that colleges identified. colleges. Only one college in the sample reported having some collaboration with an industry, and the reported 12. Students’ poor employment outcomes seem to nature of the partnership was very limited. The only be recognized as one of the major challenges by the activity that was organized under the partnership was colleges but seemingly without the sense of urgency workplace visit by students. Colleges should take more and priority that the issue deserves and needs. Weak active roles to establish effective industry collaboration to employment outcome of graduates came eighth in the improve the employability of its students. ranking of challenges. Despite the disheartening situation identified by this survey, the issue appears not to be CHALLENGES FACED BY COLLEGES receiving the same level of attention as other more visible issues such as shortage of facilities and teacher vacancies. 10. Identification of challenges that the institution It is likely because of the lack of tangible evidences and faces is essential to improve the functioning of a system inadequate awareness among college stakeholders. On or institution. Colleges were asked to rank a range of the other hand, colleges seem relatively more satisfied potential challenges according to their seriousness for the with subject knowledge and pedagogical skills of institution. This subsection is based on this ranking. teachers. 6.6 6.4 5.9 5.5 5.3 4.8 4.7 4.7 4.4 4.3 3.7 3.2 3.1 2.7 2.5 2.3 2.3 2.2 1.9 1.8 Lack of industry cooperation Lack of science labs and workshops Teacher vacancy Overcrowded classroom Shortage of ICT equipment for teaching and learning Lack of training opportunities for teachers Shortage of development budget Students’ weak employment rate Student absenteeism Overloaded examination schedule Session jams Students’ drop out Overloaded academic program Shortage of operational budget Inadequate pedagogical skills of teachers Political disturbance Inadequate capacity of governing board Low student pass rate Undue interference from the governing board Weak subject knowledge of teachers Figure 1.2: Ranking of Challenges Faced by Colleges Source: College Graduate Tracer Study (Employer survey), 2017. Note: The scores presented here are the averages of responses rating on a 10-point scale in each category, where 10 stands for ‘very serious problem’ and 1 means ‘no problem’. GRADUATE EMPLOYABILITY OF AFFILIATED COLLEGES NEW EVIDENCE FROM BANGLADESH 63 64 For further queries, please contact: World Bank Office Dhaka Plot- E-32, Agargaon, Sher-e-Bangla Nagar, Dhaka-1207 Bangladesh Tel: 880-2-5566-7777 Fax: 880-2-5566-7778 Email: bangladeshinfo@worldbank.org www.worldbank.org/bangladesh