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Overqualification: permanent or transitory?

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  • Christa Frei
  • Alfonso Sousa-Poza

Abstract

This article analyses job mismatches in Switzerland based on a subjective measure of overqualification. According to job search and job matching theories, overqualification is a transitory problem. Other theories show that overqualification can also be of a permanent nature. We test the perpetuity of overeducation using panel data from the first eight waves of the Swiss Household Panel (SHP) covering the period 1999 to 2006. Our empirical analysis reveals little evidence for lasting rigidities that would cause permanent job mismatches. Rather, spells of overqualification are relatively short: about half of all individuals who were overqualified in a given year had an adequate job match 1 year later. While a short duration of overqualification would be consistent with job search and job matching theories, our observation that the probability of a job mismatch does not significantly decrease with experience is at odds with these theories. Our article provides an alternative explanation for this phenomenon: the constant accumulation of experience and qualifications throughout a worker's career implies that, for a good job match to be maintained, qualification-specific job requirements must increase as the worker ages. If this does not occur, even older workers face a risk of becoming overqualified.

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File URL: http://hdl.handle.net/10.1080/00036846.2011.554380
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 44 (2012)
Issue (Month): 14 (May)
Pages: 1837-1847

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Handle: RePEc:taf:applec:44:y:2012:i:14:p:1837-1847

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Cited by:
  1. Brynin, Malcolm & Longhi, Simonetta, 2009. "Overqualification: Major or minor mismatch?," Economics of Education Review, Elsevier, vol. 28(1), pages 114-121, February.
  2. Jhon James Mora, 2008. "Sobre-educación en el mercado laboral colombiano," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 10(19), pages 293-309, July-Dece.
  3. 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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