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Skill mismatch among UK graduates

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  • Michela Vecchi
  • Maja Savic
  • Marina Romiti

Abstract

We examine graduates' skill mismatch in the UK focusing on unobserved abilities and academic background, including a distinction between UK and foreign degrees. Approximately 30 per cent of graduates in the UK are overqualified. Among UK-educated graduates, the incidence of overqualification is considerably lower, independent of graduates' nationality. Studying in a UK institution increases the chance of a good job match and has a positive effect on wages. Studying at more selective institutions and graduating with a first-class degree also promote good job matches and higher earnings. Our results suggest that improving graduates' skills, and a better match between foreign graduates and occupations, could be effective in reducing the skill mismatch.

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  • Michela Vecchi & Maja Savic & Marina Romiti, 2021. "Skill mismatch among UK graduates," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2021-11, Economic Statistics Centre of Excellence (ESCoE).
    • Handle: RePEc:nsr:escoed:escoe-dp-2021-11
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    Cited by:

    1. Michela Vecchi & Catherine Robinson & Maja Savic & Marina Romiti, 2023. "Vertical and Horizontal Mismatch in the UK: Are Graduates' Skills a Good Fit for Their Jobs?," National Institute of Economic and Social Research (NIESR) Discussion Papers 548, National Institute of Economic and Social Research.

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    More about this item

    Keywords

    graduate's skills; overqualification; university background;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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