Causes of Overeducation in the Australian Labour Market
AbstractOvereducation is a form of labour underutilization which occurs when the formal education level of a worker exceeds that which is required for the job. In Australia close to 30 per cent of workers are overeducated and are underutilising their skills. Using data from the Negotiating the Life Course survey, this study determines the causes of overeducation in Australia. Four of the key theories that have been used to explain overeducation are tested: human capital, job competition, assignment and the career mobility theories. Tests show that the job competition model best explains the existence of overeducation in the Australian labour market.
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Bibliographic InfoArticle provided by The Centre for Labour Market Research (CLMR), Curtin Business School in its journal Australian Journal of Labour Economics.
Volume (Year): 8 (2005)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.business.curtin.edu.au/business/research/journals-published-by-cbs/australian-journal-of-labour-economics
Analysis of Education; Human Capital; Skills; Occupational Choice; Labor Productivity (Formal Training Programs; On-the-Job Training) Time Allocation; Work Behavior; and Employment Determination;
Find related papers by JEL classification:
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
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- Kostas Mavromaras & Seamus Mcguinness & Yin King Fok, 2009.
"Assessing the Incidence and Wage Effects of Overskilling in the Australian Labour Market,"
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- Croce, Giuseppe & Ghignoni, Emanuela, 2011.
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- Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers 145, University of Rome La Sapienza, Department of Public Economics.
- Seamus McGuinness & Mark Wooden, 2007. "Overskilling, Job Insecurity and Career Mobility: Evidence from Australia," Melbourne Institute Working Paper Series wp2007n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Mañé Vernet, Ferran & Miravet, Daniel, 2010. "Sobreeducación y Sobrecualificación en los Universitarios Catalanes. Una perspectiva de género," Working Papers 2072/179592, Universitat Rovira i Virgili, Department of Economics.
- Tani, Massimiliano, 2012. "Does Immigration Policy Affect the Education-Occupation Mismatch? Evidence from Australia," IZA Discussion Papers 6937, Institute for the Study of Labor (IZA).
- Tsai, Yuping, 2010. "Returns to overeducation: A longitudinal analysis of the U.S. labor market," Economics of Education Review, Elsevier, vol. 29(4), pages 606-617, August.
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