Abstract
Public funding drives much of the recent growth of college degree supply in Europe, but few indicators are available to assess its optimal level. In this paper, I investigate an indicator of college skills usage - the fraction of college graduates employed in ?college? occupations.
Gottschalk and Hansen (2003) propose to identify ?college? occupations based on within-occupation college wage premia; I build on their strategy to study the local-labor-market relationship between the share of college graduates in the population and the use of college skills. Empirical results based on worker-level data from Czech NUTS-4 districts suggest a positive relationship, thus supporting the presence of an endogenous influence of the number of skilled workers on the demand for them.