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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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0964-1998
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Other versions of this item:
- 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 0079, Centre for the Economics of Education, LSE.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- I2 - Health, Education, and Welfare - - Education
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- Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
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- P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor and Francis Journals, vol. 31(11), pages 1437-1453.
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- Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, vol. 21(3), pages 221-229, June.
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- Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, vol. 70(279), pages 509-531, 08.
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"The Returns to Academic and Vocational Qualifications in Britain,"
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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 0004, Centre for the Economics of Education, LSE.
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
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