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Overeducation at the Start of the Career - Stepping Stone or Trap?

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  • Stijn Baert
  • Bart Cockx
  • Dieter Verhaest

Abstract

This study investigates whether young unemployed graduates who accept a job below their level of education accelerate or delay the transition into a job that matches their level of education. We adopt the Timing of Events approach to identify this dynamic treatment effect using monthly calendar data from a representative sample of Flemish (Belgian) youth who started searching for a job right after leaving formal education. We find that overeducation is a trap. This trap is especially important early in the unemployment spell. Our results are robust across various specifications and for two overeducation measures.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3825.

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Date of creation: 2012
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Handle: RePEc:ces:ceswps:_3825

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Keywords: overqualification; underemployment; school-to-work transitions; duration analysis; dynamic treatment;

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References

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Cited by:
  1. Brian Clark & Clément Joubert & Arnaud Maurel, 2014. "The Career Prospects of Overeducated Americans," NBER Working Papers 20167, National Bureau of Economic Research, Inc.
  2. S. Baert & B. Cockx & D. Verhaest, 2012. "Overeducation at the start of the career - stepping stone or trap?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/787, Ghent University, Faculty of Economics and Business Administration.
  3. Andersson Joona, Pernilla & Datta Gupta, Nabanita & Wadensjö, Eskil, 2012. "Overeducation among Immigrants in Sweden: Incidence, Wage Effects and State-dependence," SULCIS Working Papers 2012:2, Stockholm University Linnaeus Center for Integration Studies - SULCIS.
  4. Eichhorst, Werner & Boeri, Tito & Braga, Michela & De Coen, An & Galasso, Vincenzo & Gerard, Maarten & Kendzia, Michael J. & Mayrhuber, Christine & Pedersen, Jakob Louis & Schmidl, Ricarda & Steiber, , 2013. "Report No. 53: Combining the Entry of Young People in the Labour Market with the Retention of Older Workers," IZA Research Reports 53, Institute for the Study of Labor (IZA).
  5. Mavromaras, Kostas G. & Sloane, Peter J. & Wei, Zhang, 2013. "The Scarring Effects of Unemployment, Low Pay and Skills Under-utilisation in Australia Compared," IZA Discussion Papers 7440, Institute for the Study of Labor (IZA).

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