We examine the determinants of overeducation in Switzerland - an economy generally characterised by excess qualified labor demand. We define those who are overeducated more precisely, and include in our sample only those who work in occupations relating to their educational background. Failing to make this adjustment might have blurred the results of earlier studies. Our analyses show that overeducation in Switzerland cannot be explained by rigidities limiting the adjustments of supply and demand in the labor market. Hence, the Swiss labor market must in general be considered as efficient. Unobserved heterogeneity should indeed account for the phenomenon of overeducation.
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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series Working papers with number
04-85.
Find related papers by JEL classification: J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
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