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Overeducation, regional labor markets, and spatial flexibility

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  • Buchel, Felix
  • van Ham, Maarten

Abstract

For most workers, access to suitable employment is severely restricted by the fact that they look for jobs in the regional labour market rather than the global one. In this paper we analyse how macro-level opportunities (regional labour market characteristics) and microlevel restrictions (the extent to which job searchers are restricted to the regional labour market) can help to explain the phenomenon of overeducation. For the purposes of this project we obtained special permission to link regional data supplied by the German Federal Office for Building and Regional Planning to data provided by the respondents in the German Socio-Economic Panel (GSOEP), based on their region of residence. The use of multilevel models made it possible to combine both individual and regional characteristics in the same models. In addition, we used the Heckman two-step procedure to control for selective access to employment. The results show that the size of the labour market is an important factor in avoiding overeducation: looking for a job on a large labour market increases the probability of finding a suitable job. Access to a car for personal use and a longer commuting time reduce the risk of working in a job for which one is overeducated.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 53 (2003)
Issue (Month): 3 (May)
Pages: 482-493

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Handle: RePEc:eee:juecon:v:53:y:2003:i:3:p:482-493

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Web page: http://www.elsevier.com/locate/inca/622905

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References

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  1. Frank, Robert H, 1978. "Why Women Earn Less: The Theory and Estimation of Differential Overqualification," American Economic Review, American Economic Association, vol. 68(3), pages 360-73, June.
  2. Hey, John D & McKenna, Chris J, 1979. "To Move or Not to Move?," Economica, London School of Economics and Political Science, vol. 46(182), pages 175-85, May.
  3. Valerie Preston & Sara McLafferty, 1999. "articles: Spatial mismatch research in the 1990s: progress and potential," Papers in Regional Science, Springer, vol. 78(4), pages 387-402.
  4. Oded Galor & Nachum Sicherman, 1988. "A Theory of Career Mobility," University of Chicago - George G. Stigler Center for Study of Economy and State 51, Chicago - Center for Study of Economy and State.
  5. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
  6. Maarten van Ham & Pieter Hooimeijer & Clara H. Mulder, 2001. "Urban Form and Job Access: Disparate Realities in the Randstad," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 92(2), pages 231-246, 05.
  7. McGoldrick, KimMarie & Robst, John, 1996. "Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification," American Economic Review, American Economic Association, vol. 86(2), pages 280-84, May.
  8. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  9. Maarten van Ham & Clara H Mulder & Pieter Hooimeijer, 2001. "Spatial flexibility in job mobility: macrolevel opportunities and microlevel restrictions," Environment and Planning A, Pion Ltd, London, vol. 33(5), pages 921-940, May.
  10. Nachum Sicherman, 1987. "Over-Education in the Labor Market," University of Chicago - George G. Stigler Center for Study of Economy and State 48, Chicago - Center for Study of Economy and State.
  11. Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
  12. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November.
  13. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
  14. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 491-517, July.
  15. Blechinger, Doris & Pfeiffer, Friedhelm, 1996. "Technological change and skill obsolescence: the case of German apprenticeship training," ZEW Discussion Papers 96-15, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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Citations

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Cited by:
  1. Javier Escobal & Sonia Laszlo, 2005. "Measurement Error in Access to Markets," Development and Comp Systems 0503008, EconWPA.
  2. Maud Hensen & Robert de Vries, 2004. "The relationship between geographical mobility and education-job mismatches," ERSA conference papers ersa04p158, European Regional Science Association.
  3. Paula Herrera & Enrique López-Bazo & Elisabet Motellón, 2013. "“Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour market”," AQR Working Papers 201304, University of Barcelona, Regional Quantitative Analysis Group, revised May 2013.
  4. Paula Herrera-Idárraga & Enrique López-Bazo & Elisabet Motellón, 2012. "Informality and overeducation in the labor market of a developing country," Working Papers XREAP2012-20, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2012.
  5. I�aki Iriondo & Teodosio P�rez-Amaral, 2013. "The Effect of Educational Mismatch on Wages Using European Panel Data," Working Papers 700, Queen Mary, University of London, School of Economics and Finance.
  6. Claudia Geist & Patricia McManus, 2012. "Different Reasons, Different Results: Implications of Migration by Gender and Family Status," Demography, Springer, vol. 49(1), pages 197-217, February.
  7. Dieter Verhaest & Eddy Omey, 2010. "The determinants of overeducation: different measures, different outcomes?," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 608-625, September.
  8. Katz, Katarina & Österberg, Torun, 2013. "Wages of childhood immigrants in Sweden – education, returns to education and overeducation," Working Paper Series 2013:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Kitae Sohn, 2010. "The Role of Cognitive and Noncognitive Skills in Overeducation," Journal of Labor Research, Springer, vol. 31(2), pages 124-145, June.
  10. Simona Iammarino & Elisabetta Marinelli, 2012. "Education-Job (Mis)Matching And Interregional Migration: Italian University Graduates’ Transition To Work," Management Working Papers 8, Birkbeck Department of Management, revised Sep 2012.
  11. Kiersztyn, Anna, 2013. "Stuck in a mismatch? The persistence of overeducation during twenty years of the post-communist transition in Poland," Economics of Education Review, Elsevier, vol. 32(C), pages 78-91.

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