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Demand and Supply of Skilled Labour and Overeducation in Europe: A Country-level Analysis

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Author Info

  • Giuseppe Croce

    ()
    (Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano, 9, 00161, Rome, Italy.)

  • Emanuela Ghignoni

    ()
    (Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano, 9, 00161, Rome, Italy.)

Abstract

This paper analyses the incidence of overeducation of university graduates. To this end, we estimate a random effects model for a panel of European countries. Our results do not confirm that the increase of the supply of qualified labour per se can be seen as a relevant factor fuelling overeducation. The relative wage of university graduates is inversely related to overeducation. This finding suggests a role for the demand for qualified labour. Cyclical conditions also matter, as overeducation operates as a short-term adjustment mechanism. This result sheds new light on the possible effects of the recession currently hitting the industrialized countries and on policy measures needed to foster economic recovery.

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 54 (2012)
Issue (Month): 2 (June)
Pages: 413-439

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Handle: RePEc:pal:compes:v:54:y:2012:i:2:p:413-439

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Cited by:
  1. Alain Alcouffe & Jean-Michel Plassard, 2013. "Abondance d'éducation peut -elle nuire ? Une histoire des théories de économiques de la sur-éducation," Working Papers halshs-00827251, HAL.
  2. Floro Ernesto Caroleo & Francesco Pastore, 2014. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Working Papers 58, AlmaLaurea Inter-University Consortium.
  3. Emanuela Ghignoni & Alina Verashchagina, 2012. "Educational qualifications mismatch in Europe Is it demand or supply driven?," Working Papers 154, University of Rome La Sapienza, Department of Public Economics.
  4. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan, vol. 54(2), pages 231-250, June.

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