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Overeducation in the early career of secondary education graduates: An analysis using sequence techniques

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  • D. VERHAEST
  • T. SCHATTEMAN
  • W. VAN TRIER

Abstract

Based on monthly observations of their labour market status in the first seven years after leaving education, this paper uses optimal matching sequence analysis to construct a typology of entry-patterns of Flemish secondary education graduates. Our main finding is that for a significant number of young people overeducation constitutes a persistent problem, affecting about half of the sample for nearly the full observation period. Investigating the risk factors involved, we find that some factors, such as having lower human capital endowments or facing job search constraints, enhance the risk of following disadvantageous trajectories. Having a lower reservation wage seems to make being persistently overeducated more likely. Yet, starting as ‘overeducated’ does not necessarily lead to being stuck in that state for the rest of the career. About 7% of our sample succeeds in entering an adequate position even after being overeducated for a relatively long period.

Suggested Citation

  • D. Verhaest & T. Schatteman & W. Van Trier, 2014. "Overeducation in the early career of secondary education graduates: An analysis using sequence techniques," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/876, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:14/876
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    Cited by:

    1. Dieter Verhaest & Stijn Baert, 2018. "The effects of workplace learning in higher education on employment and match quality: is there an early-career trade-off?," Empirical Economics, Springer, vol. 55(3), pages 1229-1270, November.
    2. Redmond, Paul & Whelan, Adele, 2017. "Educational Attainment and Skill Utilization in the Irish Labour Market: An EU Comparison," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    3. Juan Acosta-Ballesteros & María del Pilar Osorno-del Rosal & Olga María Rodríguez-Rodríguez, 2018. "Overeducation of Young Workers in Spain: How Much Does the First Job Matter? Social Indicators Research," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 109-139, July.
    4. McQuinn, Kieran & O'Toole, Conor & Economides, Philip & Monteiro, Teresa, 2017. "Quarterly Economic Commentary, Winter 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20174, June.
    5. Verhaest, Dieter & Baert, Stijn, 2015. "The Early Labour Market Effects of Generally and Vocationally Oriented Higher Education: Is There a Trade-off?," IZA Discussion Papers 9137, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Underemployment; overqualification; optimal matching; youth labour market;
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