Testing the building blocks

Abstract This chapter empirically tests the theoretical assumptions outlined in Chapter 2 using cross-national quantitative data. It measures the variation in sectoral skill demand, operationalized as narrow or broad skill breadth, and evaluates how different higher education systems respond. Key findings indicate that publicly financed, horizontally differentiated systems better accommodate narrow STEM skill needs. Conversely, vertically differentiated, privately financed systems struggle to meet narrow skill needs. Employer survey data further suggest variation in satisfaction with graduate preparation, supporting the claim that the institutional design of higher education systems affects their responsiveness to labour market demand.