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Graduate overeducation in Australia: A comparison of the mean and objective methods

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  • Parvinder Kler

Abstract

This paper studies the extent of graduate overeducation in Australia utilising both the objective and mean methods. As well, the paper tests for non-linear returns to overeducation. It is found that the rates of graduate overeducation vary by both gender and with the methods utilised, and stand between 21% and 46%. Non-linear returns to overeducation were evident among some groups of graduates. Young male graduates seem to suffer no penalty for overeducation compared with their matched peers, but this may be a reflection of technological change altering workplace requirements faster than changes in occupational titles.

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File URL: http://www.tandfonline.com/10.1080/0964529042000325207
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Bibliographic Info

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

Volume (Year): 13 (2005)
Issue (Month): 1 ()
Pages: 47-72

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Handle: RePEc:taf:edecon:v:13:y:2005:i:1:p:47-72

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Related research

Keywords: Graduate overeducation; Labour market mismatch;

References

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  1. Green, Francis & McIntosh, Steven & Vignoles, Anna, 2002. "The Utilization of Education and Skills: Evidence from Britain," Manchester School, University of Manchester, vol. 70(6), pages 792-811, December.
  2. Alfonso Alba-Ramírez, 1993. "Mismatch in the Spanish Labor Market: Overeducation?," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 259-278.
  3. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen.
  4. Daly, Mary C. & Buchel, Felix & Duncan, Greg J., 2000. "Premiums and penalties for surplus and deficit education: Evidence from the United States and Germany," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 169-178, April.
  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  6. H. Battu & C.R. Belfield & P.J. Sloane, 2000. "How Well Can We Measure Graduate Over- Education and Its Effects?," National Institute Economic Review, National Institute of Economic and Social Research, National Institute of Economic and Social Research, vol. 171(1), pages 82-93, January.
  7. Dolton, P. J. & Makepeace, G. H., 1993. "Female labour force participation and the choice of occupation: The supply of teachers," European Economic Review, Elsevier, vol. 37(7), pages 1393-1411, October.
  8. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
  9. Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 70(279), pages 509-531, 08.
  10. Russell W. Rumberger, 1987. "The Impact of Surplus Schooling on Productivity and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 24-50.
  11. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 179-198, April.
  12. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, Elsevier, vol. 1(1), pages 75-86, February.
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Citations

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Cited by:
  1. Jones, Melanie K. & Mavromaras, Kostas G. & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute for the Study of Labor (IZA).
  2. Mavromaras, Kostas G. & McGuinness, Seamus & Fok, Yin King, 2007. "Assessing the Incidence and Wage Effects of Over-Skilling in the Australian Labour Market," IZA Discussion Papers 2837, Institute for the Study of Labor (IZA).
  3. Massimiliano Tani & Christopher Heaton & Gavin Chan, 2013. "The Wage Premium of Foreign Education: New Evidence from Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 46(4), pages 395-404, December.
  4. 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.
  5. Carroll, David & Tani, Massimiliano, 2013. "Job Search as a Determinant of Graduate Over-Education: Evidence from Australia," IZA Discussion Papers 7202, Institute for the Study of Labor (IZA).
  6. Brynin, Malcolm & Longhi, Simonetta, 2009. "Overqualification: Major or minor mismatch?," Economics of Education Review, Elsevier, Elsevier, vol. 28(1), pages 114-121, February.
  7. Chiswick, Barry R. & Miller, Paul W., 2009. "Does the Choice of Reference Levels of Education Matter in the ORU Earnings Equation?," IZA Discussion Papers 4382, Institute for the Study of Labor (IZA).
  8. Green, Colin & Kler, Parvinder & Leeves, Gareth, 2007. "Immigrant overeducation: Evidence from recent arrivals to Australia," Economics of Education Review, Elsevier, Elsevier, vol. 26(4), pages 420-432, August.
  9. Mary Silles & Peter Dolton, 2002. "The Effects of Over-Education on Earnings in the Graduate Labour Market," Economics Series Working Papers 126, University of Oxford, Department of Economics.
  10. Hung, Chia-Yu, 2008. "Overeducation and undereducation in Taiwan," Journal of Asian Economics, Elsevier, vol. 19(2), pages 125-137, April.
  11. Carroll, David & Tani, Massimiliano, 2011. "Labour Market Under-Utilisation of Recent Higher Education Graduates: New Australian Panel Evidence," IZA Discussion Papers 6047, Institute for the Study of Labor (IZA).
  12. Kifle, Temesgen, 2009. "The effect of immigration on the earnings of native-born workers: Evidence from Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 350-356, March.
  13. Carroll, David & Tani, Massimiliano, 2013. "Over-education of recent higher education graduates: New Australian panel evidence," Economics of Education Review, Elsevier, Elsevier, vol. 32(C), pages 207-218.
  14. Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Department of Economics - Working Papers Series, The University of Melbourne 940, The University of Melbourne.
  15. George Messinis & Nilss Olekalns, 2007. "Skills Mismatch and Returns to Training in Australia:Some New Evidence," Department of Economics - Working Papers Series, The University of Melbourne 997, The University of Melbourne.

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