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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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    2. Sucharita Ghosh & Emanuele Grassi, 2020. "Overeducation and overskilling in the early careers of PhD graduates: Does international migration reduce labour market mismatch?," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 915-944, August.
    3. Jan Aleksander Baran, 2020. "Are Poles stuck in overeducation? Individual dynamics of educational mismatch in Poland," Working Papers 2020-23, Faculty of Economic Sciences, University of Warsaw.
    4. Anıl DUMAN, 2018. "Education Mismatches in the Labor Markets and Their Impact on Wages across Sectors: Evidence from Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    5. Cristian Darío Castillo Robayo & Javier García Estévez, 2019. "Desempleo juvenil en Colombia: ¿la educación importa?," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 11(1), pages 101-101, February.
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    7. Hanan Morsy & Adamon N. Mukasa, 2019. "Working Paper 326 - Youth Jobs, Skill and Educational Mismatches in Africa," Working Paper Series 2452, African Development Bank.
    8. Morsy, Hanan & Mukasa, Adamon, 2019. "Youth Jobs, Skill and Educational Mismatches in Africa," MPRA Paper 100394, University Library of Munich, Germany.
    9. Obiols-Homs, F. & Sánchez-Marcos, V., 2018. "Education outcomes and the labor market," Labour Economics, Elsevier, vol. 54(C), pages 14-28.
    10. Esperanza Vera-Toscano & Elena C. Meroni, 2021. "An Age–Period–Cohort Approach to the Incidence and Evolution of Overeducation and Skills Mismatch," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 711-740, January.
    11. He, Yu & Peng, Xiujian & Xu, Hangtian, 2020. "Overeducation, market recognition, and effective labour supply," China Economic Review, Elsevier, vol. 59(C).
    12. Rafael Muñoz de Bustillo Llorente & Sudipa Sarkar & Raquel Sebastian & Jose-Ignacio Antón, 2018. "Educational mismatch in Europe at the turn of the century: Measurement, intensity and evolution," International Journal of Manpower, Emerald Group Publishing, vol. 39(8), pages 977-995, November.
    13. 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.
    14. Hanan Morsy & Adamon N. Mukasa, 2020. "‘Mind the mismatch?’ Incidence, drivers, and persistence of African youths' skill and educational mismatches," African Development Review, African Development Bank, vol. 32(S1), pages 5-19, November.
    15. 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.
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