How Higher Education Impacts Young People’s Job Opportunities: A Focus on Mexico

Web Editor

November 6, 2025

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Introduction

In recent decades, higher education has become one of the most crucial factors for sustained economic growth and social mobility. Recent empirical evidence demonstrates that investing in the university-level training of new generations not only boosts productivity but also expands young people’s opportunities to access formal, well-paying jobs.

The Importance of Higher Education in Mexico

In a country like Mexico, where there is still a significant gap between real wages and the economy’s growth, this aspect becomes fundamental.

Recent Studies on Higher Education and Job Opportunities

Two recent studies help quantify this relationship. The first, by Escamilla-Mejía, Alfaro-Ponce, Aali-Bujari, and Hernández-Veleros (2025), analyzed 24 OECD countries between 2000 and 2019. The results show that women with higher education contribute more to GDP per capita growth than men, especially in middle- or low-income countries. Moreover, young adults aged 25 to 34 with tertiary education are the group that most drives economic growth.

However, older adults tend to have decreasing returns, highlighting the need for continuous professional skills updates.

The study concludes that the impact of higher education depends on each country’s structural conditions. Where public policies strengthen equity, quality, and relevance in university training, the effects on economic growth and productivity are more sustainable and significant.

Mexico-Specific Study Findings

The second study, by Rodríguez Galván and Islas Aguirre (2025), analyzed Mexico between 2010 and 2024 using ENOE data. The authors found that the labor participation of individuals with university degrees increased by 46.3% during this period, though accompanied by growing salary disparities between genders and sectors, particularly in the technology sector.

Engineering, manufacturing, and administration are the most economically rewarding careers, while arts, humanities, and services lag behind.

The study also warns that the concentration of skilled employment in urban areas partially limits the redistributive effects of higher education, a result clearly influenced by urban concentration patterns and economic activity in a country like Mexico.

Another challenge, according to the authors, is connecting academic offerings with the demands of the digital economy and new industries.

Growth of Private Higher Education in Latin America

In addition to this reality, another phenomenon is taking place in Latin America: the sustained growth of private higher education, which now represents more than 50% of university enrollment in several countries. In Mexico, this proportion remains below 40%.

This process responds to unmet demand for public education (resulting from the end of a demographic expansion phase a few decades ago), insufficient state funding, and the expansion of policies that facilitated the opening of new private institutions.

Although this growth presents challenges in terms of equity and quality, it has also had positive effects for young people. Private education has allowed for expanded coverage, diversified program offerings, and more flexible models adapted to labor market needs. In some cases, these institutions have promoted greater technological innovation that strengthens links with the productive sector, especially in high-demand areas like information technologies, healthcare, and engineering.

Key Questions and Answers

  • What do recent studies show about higher education and job opportunities? Recent empirical evidence demonstrates that investing in university-level training of new generations not only boosts productivity but also expands young people’s opportunities to access formal, well-paying jobs.
  • How does higher education impact job opportunities in Mexico? In Mexico, where there is still a significant gap between real wages and economic growth, higher education plays a crucial role in expanding opportunities for young people to access formal, well-paying jobs.
  • What do the studies reveal about gender and sectoral salary disparities in Mexico? The labor participation of individuals with university degrees has increased significantly in Mexico, but this growth is accompanied by growing salary disparities between genders and sectors, particularly in the technology sector.
  • What challenges does Mexico face regarding higher education? Mexico faces the challenge of integrating both public and private sectors in education, creating a vision that combines coverage, relevance, and excellence, ensuring higher education serves as an effective tool for economic growth and social mobility.