Rapid Growth of Massive Open Online Courses (MOOCs) and the Market for University Graduates

Massive Open Online Courses (MOOCs) have seen exponential growth over the last couple of years. Their growth has now reached a point where some institutions of higher learning have started to offer degrees based entirely on MOOCs. In this note, I consider the implications of this development for the market of university graduates. I use a simple model of labor market to show that an increase in the supply of university graduates or a skill mismatch between jobs and graduates can lead to more unemployment and/or underemployment among the university graduates. To the extent the MOOCs increase the supply of university graduates or worsen the skill mismatch, they will aggravate the problems of graduate unemployment and underemployment