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Demand and Supply of Skilled Labour and Overeducation in Europe: A Country-level Analysis

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  • Giuseppe Croce

    () (Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano, 9, 00161, Rome, Italy.)

  • Emanuela Ghignoni

    () (Department of Economics and Law, Sapienza University of Rome, Via del Castro Laurenziano, 9, 00161, Rome, Italy.)

Abstract

This paper analyses the incidence of overeducation of university graduates. To this end, we estimate a random effects model for a panel of European countries. Our results do not confirm that the increase of the supply of qualified labour per se can be seen as a relevant factor fuelling overeducation. The relative wage of university graduates is inversely related to overeducation. This finding suggests a role for the demand for qualified labour. Cyclical conditions also matter, as overeducation operates as a short-term adjustment mechanism. This result sheds new light on the possible effects of the recession currently hitting the industrialized countries and on policy measures needed to foster economic recovery.

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  • Giuseppe Croce & Emanuela Ghignoni, 2012. "Demand and Supply of Skilled Labour and Overeducation in Europe: A Country-level Analysis," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 413-439, June.
  • Handle: RePEc:pal:compes:v:54:y:2012:i:2:p:413-439
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    Cited by:

    1. Enrico Marelli & Dario Sciulli & Marcello Signorelli, 2014. "Skill Mismatch of Graduates in a Local Labour Market," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, pages 181-194.
    2. repec:spr:italej:v:3:y:2017:i:2:d:10.1007_s40797-017-0053-3 is not listed on IDEAS
    3. Floro Ernesto Caroleo & Francesco Pastore, 2012. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Discussion Papers 18_2012, CRISEI, University of Naples "Parthenope", Italy.
    4. Ghignoni, Emanuela & Verashchagina, Alina, 2014. "Educational qualifications mismatch in Europe. Is it demand or supply driven?," Journal of Comparative Economics, Elsevier, pages 670-692.
    5. Barbara Ermini & Luca Papi & Francesca Scaturro, 2016. "Over-education among italian Ph.D. graduates. Does the crisis make a difference?," Mo.Fi.R. Working Papers 126, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    6. Theo Sparreboom & Alexander Tarvid, 2016. "Imbalanced Job Polarization and Skills Mismatch in Europe," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), pages 15-42.
    7. Kupets, Olga, 2016. "Education-job mismatch in Ukraine: Too many people with tertiary education or too many jobs for low-skilled?," Journal of Comparative Economics, Elsevier, pages 125-147.
    8. Alain Alcouffe & Jean-Michel Plassard, 2013. "Abondance d'éducation peut -elle nuire ? Une histoire des théories de économiques de la sur-éducation," Working Papers halshs-00827251, HAL.
    9. Giuseppe Croce, 2016. "La rincorsa mancata. Istruzione e cambiamento tecnologico in Italia a confronto con le altre economie avanzate," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, pages 77-99.
    10. Barbara Ermini & Luca Papi & Francesca Scaturro, 2017. "Over education and the great recession. The case of italian PH.D graduates," Working Papers 420, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    11. Josef C Brada & Marcello Signorelli, 2012. "Comparing Labor Market Performance: Some Stylized Facts and Key Findings," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 54(2), pages 231-250, June.
    12. Delaruelle, Katrijn & Buffel, Veerle & Bracke, Piet, 2015. "Educational expansion and the education gradient in health: A hierarchical age-period-cohort analysis," Social Science & Medicine, Elsevier, pages 79-88.
    13. McGuinness, Seamus & Bergin, Adele & Whelan, Adele, 2017. "Overeducation in Europe: Trends, Convergence and Drivers," IZA Discussion Papers 10678, Institute for the Study of Labor (IZA).
    14. Caroleo, Floro Ernesto & Pastore, Francesco, 2015. "Overeducation: A Disease of the School-to-Work Transition System," IZA Discussion Papers 9049, Institute for the Study of Labor (IZA).
    15. Davia, Maria A. & McGuinness, Seamus & O'Connell, Philip J., 2016. "Determinants of Regional Differences in Rates of Overeducation in Europe," IZA Discussion Papers 10250, Institute for the Study of Labor (IZA).
    16. Gianni Betti, 2014. "The effect of equivalence scales on poverty at Oblast level in Ukraine," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, pages 78-88.

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