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Overeducation at the start of the career - stepping stone or trap?

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  • S. BAERT

    ()

  • B. COCKX

    ()

  • D. 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 Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 12/787.

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Length: 41 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:rug:rugwps:12/787

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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. Clark, Brian & Joubert, Clement & Maurel, Arnaud, 2014. "The Career Prospects of Overeducated Americans," IZA Discussion Papers 8313, Institute for the Study of Labor (IZA).
  2. Baert, Stijn & Cockx, Bart & Verhaest, Dieter, 2013. "Overeducation at the start of the career: Stepping stone or trap?," Labour Economics, Elsevier, vol. 25(C), pages 123-140.
  3. 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).
  4. 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.
  5. Baert, Stijn & Verhaest, Dieter, 2014. "Unemployment or Overeducation: Which is a Worse Signal to Employers?," IZA Discussion Papers 8312, Institute for the Study of Labor (IZA).
  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.
  7. 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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