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Overeducation in the Finnish regional labour markets

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  • Jauhiainen, Signe

Abstract

A spatially limited job search area is considered to be one of the explanations for overeducation. Previous studies have observed that living in a small labour market increases and spatial mobility reduces the probability of overeducation. This paper examines the influence of region and mobility on the risk of overeducation for men and women. Overeducated individuals are identified with a statistical measurement method. In total, 9.6 percent of all workers are overeducated. A probit model that controls for sample selection bias is used in the empirical analysis. The probability of overeducation seems to depend on the region. In other words, living in a large regional labour market decreases the probability of being overeducated.

Suggested Citation

Handle: RePEc:eee:paresc:v:90:y:2011:i:3:p:573-589
DOI: 10.1111/j.1435-5957.2010.00334.x
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JEL classification:

  • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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