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

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  • Baert, Stijn

    ()
    (Ghent University)

  • Cockx, Bart

    ()
    (Ghent University)

  • Verhaest, Dieter

    ()
    (K.U.Leuven)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6562.

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Length: 42 pages
Date of creation: May 2012
Date of revision:
Publication status: published in: Labour Economics, 2013, 25, 123-140
Handle: RePEc:iza:izadps:dp6562

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

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References

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Citations

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Cited by:
  1. 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).
  2. 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).
  3. Stijn Baert & Bart Cockx & Dieter Verhaest, 2012. "Overeducation at the Start of the Career - Stepping Stone or Trap?," CESifo Working Paper Series 3825, CESifo Group Munich.
  4. Andersson Joona, Pernilla & Datta Gupta, Nabanita & Wadensjö, Eskil, 2012. "Overeducation among Immigrants in Sweden: Incidence, Wage Effects and State-Dependence," IZA Discussion Papers 6695, Institute for the Study of Labor (IZA).
  5. Brian Clark & Clément Joubert & Arnaud Maurel, 2014. "The Career Prospects of Overeducated Americans," NBER Working Papers 20167, National Bureau of Economic Research, Inc.
  6. Antonio Di Paolo & Ferran Mañé, 2014. "Are we wasting our talent? Overqualification and overskilling among PhD graduates," Working Papers XREAP2014-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2014.

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