1 Department of Economics and Business Economics, Aarhus BSS, Aarhus University2 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
Human capital is an important growth factor for developing and developed countries and measuring the return to education is essential in evaluating the growth impact from human capital. Most studies use the length of education measured by the years of schooling as an indicator of human capital. However, the quality of education varies a lot across universities and business schools as well as across student within an education institution. The high variations in grades among students reflect the heterogeneity in human capital among students and this study verify how this heterogeneity is reflected in the post performance of students in the labor market. To estimate the post graduate performance the study uses a sample of 1000 business student with their labor market status after 1 and 5 years. Besides the return to the mark level the study also evaluate the importance of the alignment of job and education competences.