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The persistence of overeducation among recent graduates

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  • Meroni, Elena Claudia
  • Vera-Toscano, Esperanza

Abstract

This paper tests whether overeducation at the beginning of a graduate’s job career is a trap into continuing overeducation later on, or a stepping stone to a job that matches the candidate’s qualifications. We focus on a sample of higher education graduates and shape the decision of accepting an overducated job in a dynamic treatment framework. We distinguish between apparent overeducation (i.e. overeducated only) and genuine overeducation (i.e. both overeducated and skills mismatch) and investigate the causal effect of both types of overeducation of future job outcomes. We find evidence that overeducation at the beginning of a career leads to a greater likelihood of being overeducated later on, with no real differences between apparent or genuine overeducation. Nonetheless, interesting national heterogeneities emerge, with Southern, Eastern and Continental graduates facing systematic trap into overeducation (genuine and apparent), while their UK peers are trapped only if they accept their first job immediately after graduation. For Scandinavian graduates, larger negative effects are found if they are apparently overeducated for their first job.

Suggested Citation

  • Meroni, Elena Claudia & Vera-Toscano, Esperanza, 2017. "The persistence of overeducation among recent graduates," Labour Economics, Elsevier, vol. 48(C), pages 120-143.
  • Handle: RePEc:eee:labeco:v:48:y:2017:i:c:p:120-143
    DOI: 10.1016/j.labeco.2017.07.002
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    References listed on IDEAS

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    2. Obiols-Homs, F. & Sánchez-Marcos, V., 2018. "Education outcomes and the labor market," Labour Economics, Elsevier, vol. 54(C), pages 14-28.
    3. Stefan Vogtenhuber & David Baumegger & Lorenz Lassnigg, 2018. "Arbeitskräfteangebot und Nachfrage: Verdrängung durch Bildungsexpansion?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 173, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    4. Stefan Vogtenhuber & David Baumegger & Lorenz Lassnigg, 2017. "Überqualifikation und Verdrängung am österreichischen Arbeitsmarkt im Zeitverlauf," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 43(4), pages 535-568.
    5. Joan Miquel Verd & Oriol Barranco & Mireia Bolíbar, 2019. "Youth unemployment and employment trajectories in Spain during the Great Recession: what are the determinants?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-20, December.
    6. Muñoz de Bustillo, Rafael & Sarkar, Sudipa & Sebastián, Raquel & Antón, José-Ignacio, 2018. "Education mismatch in Europe at the turn of the century: Measurement, intensity and evolution," MPRA Paper 85779, University Library of Munich, Germany.

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