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

  • Baert, Stijn

    ()

    (Ghent University)

  • Cockx, Bart

    ()

    (Ghent University)

  • Verhaest, Dieter

    ()

    (KU Leuven)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6562.

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Length: 42 pages
Date of creation: May 2012
Date of revision:
Publication status: published in: Labour Economics, 2013, 25, 123-140 [Online Access to Journal Article]
Handle: RePEc:iza:izadps:dp6562
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