Enrollment of Greek students in domestic and foreign universities has increased dramatically since 1960. Demand for higher education continues to be strong despite diminishing income differentials, because higher education is cheap in Greece and is still associated with an earnings premium. Movement toward a privatization model for higher…

The relationship between education and the labor market, with a focus on the technical side and on the economic connection, is investigated. A potential role of educational planning for smoothing out market imperfections and thus preventing the emergence of social problems relating to the education-work relationship is discussed. (MLW)

Two government-induced distortions generate an excess demand for entry into the Greek higher education system. In Greece the private cost of higher education is too low and the government-set wage rate too high, thus contributing to the excess demand for higher education and an apparent "graduate unemployment" problem. (MLW)