The Scale of Overeducation in the Rural Labor Market

This article examines the problem of job-education mismatch among rural workers. The goal of the article is to assess the incidence of overeducation in rural areas and to identify the most typical jobs of overeducated employees. The hypothesis of the research is that the skills of specialists are not fully utilized in the rural labor market. The study uses the microdata of Rosstat’s Labor Force Survey 2012–2018. To identify a mismatch, we use the subjective estimates of the respondents about the quality of their match. To determine overeducation, we suggest a composite approach that combines self-assessment of the respondents and a job analysis using the Russian National Classification of Occupations. The analysis is carried out by educational levels. The study reveals that among the rural population, there is an increase in the share of employees with both higher and secondary vocational education degrees. It is revealed that the extent of such a discrepancy among the rural population of Russia is much larger compared to urban residents. For a detailed analysis, the authors use data on the current jobs of the respondents. It has been established that the extent and type of discrepancy, as well as the current job, depend on the field of study. It was also revealed that 65% of mismatch cases for rural workers with higher education and 74% of mismatch cases for rural medium-level specialists are associated with overeducation, i.e. represent a vertical mismatch. Conversely, 77% of cases of the mismatch for skilled workers are horizontal, i.e. they represent a work requiring a similar level of qualification, but a different field of study. The practical significance of the research results is their usefulness for the development of educational policy. In particular, they can be used to determine the list of demanded occupations in the rural labor market, as well as to develop programs of adult education and training for rural inhabitants.