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Over-education of recent higher education graduates: New Australian panel evidence

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  • Carroll, David
  • Tani, Massimiliano

Abstract

This study investigates the incidence of over-education amongst recent Australian bachelor degree graduates and its effect on their earnings. We find that between 24% and 37% of graduates were over-educated shortly after course completion, with over-education most common amongst young females and least common amongst older females. Over-education rates vary markedly across major fields of study and appear to be associated with the relative demand for graduate labour. Overeducation was less common three years after course completion; however a nontrivial proportion of graduates remain over-educated. With regard to the effect of over-education on earnings, we find a notable age-related effect not reported in earlier studies. Young over-educated graduates were not penalised after unobserved heterogeneity had been addressed, whereas older over-educated graduates were at an earnings disadvantage relative to their well-matched peers.

Suggested Citation

  • Carroll, David & Tani, Massimiliano, 2013. "Over-education of recent higher education graduates: New Australian panel evidence," Economics of Education Review, Elsevier, vol. 32(C), pages 207-218.
  • Handle: RePEc:eee:ecoedu:v:32:y:2013:i:c:p:207-218
    DOI: 10.1016/j.econedurev.2012.10.002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Dipanwita Sarkar & Trevor Collier, 2016. "Does Host-Country Education Mitigate Immigrant Inefficiency? Evidence from Earnings of Australian University Graduates," QuBE Working Papers 040, QUT Business School.
    2. Caroleo, Floro Ernesto & Pastore, Francesco, 2017. "Overeducation at a glance. Determinants and wage effects of the educational mismatch based on AlmaLaurea data," GLO Discussion Paper Series 15, Global Labor Organization (GLO).
    3. Agustí Segarra & Mercedes Teruel & Miquel Angel Bove, 2014. "A territorial approach to R&D subsidies: Empirical evidence for Catalonian firms," Working Papers XREAP2014-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Sep 2014.
    4. repec:kap:decono:v:165:y:2017:i:4:d:10.1007_s10645-017-9304-9 is not listed on IDEAS
    5. Antonio Di Paolo & Ferran Mañé, 2014. "“Are we wasting our talent? Overqualification and overskilling among PhD graduates”," IREA Working Papers 201426, University of Barcelona, Research Institute of Applied Economics, revised Oct 2014.
    6. repec:eee:labeco:v:48:y:2017:i:c:p:120-143 is not listed on IDEAS
    7. Verbruggen, M. & van Emmerik, H. & van Gils, A.E.J. & Meng, C.M. & de Grip, A., 2015. "Does early-career underemployment impact future career success? A path dependency perspective," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    8. David Carroll & Massimiliano Tani, 2015. "Job search as a determinant of graduate over-education: evidence from Australia," Education Economics, Taylor & Francis Journals, vol. 23(5), pages 631-644, October.
    9. Seamus McGuinness & Delma Byrne, 2015. "Born abroad and educated here: examining the impacts of education and skill mismatch among immigrant graduates in Europe," IZA Journal of Migration, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-30, December.

    More about this item

    Keywords

    Over-education; Graduate labour market; Human capital;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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