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The incidence and determinants of overeducation in Belgium

Author

Listed:
  • Gungor Karakaya
  • Robert Plasman
  • François Rycx

Abstract

This paper examines the incidence and determinants of overeducation in the Belgian private sector. Two different approaches are used to define overeducation by means of data on characteristics of employees and employers. Using the 1995 Structure of Earnings Survey, it is found that between 22 and 24% of the workforce is overeducated. Results support the idea that labour market experience is treated by employers as a substitute for formal education. They also show that male workers, people employed in state-owned firms and apprentices/trainees are less affected by overeducation. Further results suggest that the size of the establishment has a very weak (negative) impact on overeducation.

Suggested Citation

  • Gungor Karakaya & Robert Plasman & François Rycx, 2005. "The incidence and determinants of overeducation in Belgium," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 48(1-2), pages 113-136.
    • Handle: RePEc:bxr:bxrceb:y:2005:v:48:i:1-2:p:113-135
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    File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/11991/1/ber-0324.pdf
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    Cited by:

    1. Karakaya, Güngör, 2008. "Early cessation of activity in the labour market: impact of supply and demand factors," MPRA Paper 13390, University Library of Munich, Germany.

    More about this item

    Keywords

    Education; Human capital; Skill mismatch; Crowding out;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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