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How Well Can We Measure Graduate Over- Education and Its Effects?

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  • Battu, H.
  • Belfield, C.R.
  • Sloane, P.J.

Abstract

Using data from two cohorts of graduates, this article examines three aspects of over-education. First, using three new measures, we present an estimate of graduate over-education in the UK. We find that the scale of over-education varies with measurement techniques, with weak correlations between the three measures. Second, across the three measures we estimate the effects of over-education on earnings and job satisfaction. The effects of over-education on earnings and job satisfaction are similar, not withstanding the measures identifying different individuals as being over-educated. One finding is that the effects of being over-educated are more significant for female graduates than male, although it is ambiguous which gender is more prone to over-education. Third, we examine another source of ambiguity regarding over-education, namely that firms upgrade the tasks they allocate to their employees who appear to be over-educated. We find that, for graduates, job quality for the over-educated is not converging to that of the appropriately educated.

Suggested Citation

  • Battu, H. & Belfield, C.R. & Sloane, P.J., 2000. "How Well Can We Measure Graduate Over- Education and Its Effects?," National Institute Economic Review, Cambridge University Press, vol. 171, pages 82-93, January.
  • Handle: RePEc:cup:nierev:v:171:y:2000:i::p:82-93_7
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