Overeducation and the skills of UK graduates
AbstractDuring the early 1990s the proportion of a cohort entering higher education in the UK doubled over a short period of time. The paper investigates the effect of the expansion on graduates' early labour market attainment, focusing on overeducation. We define overeducation by combining occupation codes and a self-reported measure for the appropriateness of the match between qualification and the job. We therefore define three groups of graduates: matched, apparently overeducated and genuinely overeducated. This measure is well correlated with alternative definitions of overeducation. Comparing pre- and post-expansion cohorts of graduates, we find with this measure that the proportion of overeducated graduates has doubled, even though overeducation wage penalties have remained stable. We do not find that type of institution affects the probability of genuine overeducation. Apparently overeducated graduates are mostly indistinguishable from matched graduates, whereas genuinely overeducated graduates principally lack non-academic skills and suffer a large wage penalty. Individual unobserved heterogeneity differs between the three groups of graduates but controlling for it does not alter these conclusions. Copyright (c) 2009 Royal Statistical Society.
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Bibliographic InfoArticle provided by Royal Statistical Society in its journal Journal of the Royal Statistical Society: Series A (Statistics in Society).
Volume (Year): 172 (2009)
Issue (Month): 2 ()
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Other versions of this item:
- Arnaud Chevalier & Joanne Lindley, 2007. "Over-education and the skills of UK graduates," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19397, London School of Economics and Political Science, LSE Library.
- Chevalier, Arnaud & Lindley, Joanne, 2006. "Over-Education and the Skills of UK Graduates," IZA Discussion Papers 2442, Institute for the Study of Labor (IZA).
- Arnaud Chevalier & Joanne Lindley, 2007. "Over-Education and the Skills of UK Graduates," CEE Discussion Papers, Centre for the Economics of Education, LSE 0079, Centre for the Economics of Education, LSE.
- I2 - Health, Education, and Welfare - - Education
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
- Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 70(279), pages 509-531, 08.
- Dearden, Lorraine, et al, 2002.
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- Lorraine Dearden & Steven McIntosh & Michal Myck & Anna Vignoles, 2000. "The Returns to Academic and Vocational Qualifications in Britain," CEE Discussion Papers, Centre for the Economics of Education, LSE 0004, Centre for the Economics of Education, LSE.
- Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 179-198, April.
- Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, Elsevier, vol. 21(3), pages 221-229, June.
- Francis Green & Steven McIntosh, 2007. "Is there a genuine under-utilization of skills amongst the over-qualified?," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(4), pages 427-439.
- H. Battu & C. R. Belfield & P. J. Sloane, 1999.
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Education Economics, Taylor & Francis Journals,
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- Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers, Department of Economics, University of Aberdeen 98-03, Department of Economics, University of Aberdeen.
- H. Battu & C.R. Belfield & P.J. Sloane, 2000. "How Well Can We Measure Graduate Over- Education and Its Effects?," National Institute Economic Review, National Institute of Economic and Social Research, National Institute of Economic and Social Research, vol. 171(1), pages 82-93, January.
- Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Overeducation in the UK
by Tyler Cowen in Marginal Revolution on 2011-10-09 06:05:14
- Jockeys, whips & market failure
by chris dillow in Stumbling and Mumbling on 2011-09-27 13:49:53
- Low skills: why worry?
by chris dillow in Stumbling and Mumbling on 2013-10-09 11:54:28
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