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Overeducation at the Start of the Career - Stepping Stone or Trap?

  • Stijn Baert
  • Bart Cockx
  • Dieter Verhaest

This study investigates whether young unemployed graduates who accept a job below their level of education accelerate or delay the transition into a job that matches their level of education. We adopt the Timing of Events approach to identify this dynamic treatment effect using monthly calendar data from a representative sample of Flemish (Belgian) youth who started searching for a job right after leaving formal education. We find that overeducation is a trap. This trap is especially important early in the unemployment spell. Our results are robust across various specifications and for two overeducation measures.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3825.

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Date of creation: 2012
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Handle: RePEc:ces:ceswps:_3825
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