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The Utilization of Education and Skills: Evidence from Britain

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  • Green, Francis
  • McIntosh, Steven
  • Vignoles, Anna

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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Bibliographic Info

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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Cited by:
  1. Belan, Pascal & Carré, Martine & Gregoir, Stéphane, 2010. "Subsidizing low-skilled jobs in a dual labor market," Labour Economics, Elsevier, Elsevier, vol. 17(5), pages 776-788, October.
  2. Maite Bl�zquez & Santiago Budría, 2012. "Overeducation dynamics and personality," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 20(3), pages 260-283, March.
  3. Shirley Dex & Jo Lindley, 2007. "Labour market job matching for UK minority ethnic groups," Working Papers, The University of Sheffield, Department of Economics 2007003, The University of Sheffield, Department of Economics, revised Jan 2007.
  4. Aline Valette, 2004. "Labour Market Segmentation : a Comparison between France and the UK From the Eighties to nowadays," Post-Print, HAL halshs-00082338, HAL.
  5. Parvinder Kler, 2005. "Graduate overeducation in Australia: A comparison of the mean and objective methods," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(1), pages 47-72.
  6. Nattavudh Powdthavee & Anna Vignoles, 2006. "Using Rate of Return Analyses to Understand Sector Skill Needs," CEE Discussion Papers, Centre for the Economics of Education, LSE 0070, Centre for the Economics of Education, LSE.
  7. Schlicht, Ekkehart, 2007. "Wage Dispersion and Overqualification as Entailed by Reder Competition," Economics Discussion Papers 2007-22, Kiel Institute for the World Economy.
  8. Antonio Di Paolo & Ferran Mañé, 2014. "Are we wasting our talent? Overqualification and overskilling among PhD graduates," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2014-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2014.
  9. Green, Francis & Andy Dickerson, 2003. "The Growth and Valuation of Generic Skills," Royal Economic Society Annual Conference 2003, Royal Economic Society 91, Royal Economic Society.
  10. Dieter Verhaest & Eddy Omey, 2010. "The determinants of overeducation: different measures, different outcomes?," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 31(6), pages 608-625, September.
  11. Joanne Lindley & Steven McIntosh, 2008. "A Panel Data Analysis of the Incidence and Impact of Over-education," Working Papers, The University of Sheffield, Department of Economics 2008009, The University of Sheffield, Department of Economics, revised Jul 2008.
  12. Verhaest Dieter & Velden Rolf van der, 2010. "Cross-country differences in graduate overeducation and its persistence," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  13. Francis Green & Nicholas Tsitsianis, 2004. "Can the Changing Nature of Jobs Account for National Trends in Job Satisfaction?," Studies in Economics, Department of Economics, University of Kent 0406, Department of Economics, University of Kent.
  14. Aline Valette, 2007. "Systèmes d'emploi français et britannique : Evolutions entre 1980 et 2001," Post-Print, HAL halshs-00799192, HAL.

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