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The Utilization of Education and Skills: Evidence from Britain

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Author Info
Green, Francis
McIntosh, Steven
Vignoles, Anna

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Abstract

This paper assesses how far the products of education are utilized in the British labour market, and how utilization has recently changed. We distinguish the concepts of "under-education", "over-education" and "qualification inflation". Using data from four surveys we find that over-education, while substantial, has been stable since the mid-1980s. Although observed over-education is partly associated with low ability compared with one's educational peers, both over-education and skill under-utilization are also associated with mismatch in the labour market, and both involve a loss of wages. We conclude that, in order to inform policy, education and skill utilization should be closely monitored. Copyright 2002 by Blackwell Publishers Ltd and The Victoria University of Manchester

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Article provided by University of Manchester in its journal Manchester School.

Volume (Year): 70 (2002)
Issue (Month): 6 (December)
Pages: 792-811
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Handle: RePEc:bla:manchs:v:70:y:2002:i:6:p:792-811

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  1. Francis Green & Nicholas Tsitsianis, 2004. "Can the Changing Nature of Jobs Account for National Trends in Job Satisfaction?," Studies in Economics 0406, Department of Economics, University of Kent. [Downloadable!]
  2. Joanne Lindley & Steven McIntosh, 2008. "A Panel Data Analysis of the Incidence and Impact of Over-education," Working Papers 2008009, The University of Sheffield, Department of Economics, revised Jul 2008. [Downloadable!]
  3. Shirley Dex & Jo Lindley, 2007. "Labour market job matching for UK minority ethnic groups," Working Papers 2007003, The University of Sheffield, Department of Economics, revised Jan 2007. [Downloadable!]
  4. D. Verhaest & E. Omey, 2009. "The Determinants of Overeducation: Different Measures, Different Outcomes?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/592, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  5. Parvinder Kler, 2005. "Graduate overeducation in Australia: A comparison of the mean and objective methods," Education Economics, Taylor and Francis Journals, vol. 13(1), pages 47-72, March. [Downloadable!] (restricted)
  6. Schlicht, Ekkehart, 2007. "Wage Dispersion and Overqualification as Entailed by Reder Competition," Economics Discussion Papers 2007-22, Kiel Institute for the World Economy. [Downloadable!]
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  7. Aline Valette, 2004. "Labour Market Segmentation : a Comparison between France and the UK From the Eighties to nowadays," Post-Print halshs-00082338_v1, HAL. [Downloadable!]
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