The Impact of Higher Education on 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 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 Economic Growth

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’s Case Study

The second study, by Rodríguez Galván and Islas Aguirre (2025), analyzed Mexico’s situation 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 careers with the highest economic return, while arts, humanities, and services continue to 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.

The Growth of Private Higher Education in Latin America

In addition to this reality, there is another phenomenon 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 poses 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.

The quality and equity of the educational system will depend on effective regulation that ensures academic standards and prevents indiscriminate social segmentation.

Mexico’s Challenge: Integrating Public and Private Sectors in Education

Mexico’s challenge is to integrate both the public and private sectors in education, creating a vision that combines coverage, relevance, and excellence. This ensures that higher education serves as an effective tool for economic growth and social mobility.

Key Questions and Answers

  • What is the significance of higher education for economic growth? Higher education contributes to GDP per capita growth, with women holding advanced degrees showing a more substantial impact in middle- or low-income countries.
  • How does higher education affect job opportunities for young people? Young adults aged 25 to 34 with tertiary education are the primary drivers of economic growth.
  • What challenges does Mexico face regarding higher education? Mexico must address salary disparities between genders and sectors, urban concentration of skilled employment, and connecting academic offerings with digital economy demands.
  • How has the growth of private higher education impacted young people in Mexico? Private education has expanded coverage, diversified program offerings, and promoted technological innovation, benefiting young people’s access to well-paying jobs.
  • What is the role of effective regulation in higher education? Effective regulation ensures academic standards, prevents social segmentation, and contributes to the quality and equity of the educational system.