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Overeducation in the Swiss Labour Market: Does Anything Go Wrong?

We examine the determinants of overeducation in Switzerland - an economy generally characterised by excess qualified labor demand. We define those who are overeducated more precisely, and include in our sample only those who work in occupations relating to their educational background. Failing to make this adjustment might have blurred the results of earlier studies. Our analyses show that overeducation in Switzerland cannot be explained by rigidities limiting the adjustments of supply and demand in the labor market. Hence, the Swiss labor market must in general be considered as efficient. Unobserved heterogeneity should indeed account for the phenomenon of overeducation.

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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 04-85.

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Length: 16 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:kof:wpskof:04-85
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  1. Frank, Robert H, 1978. "Why Women Earn Less: The Theory and Estimation of Differential Overqualification," American Economic Review, American Economic Association, vol. 68(3), pages 360-73, June.
  2. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
  3. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
  4. Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, vol. 21(3), pages 221-229, June.
  5. Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, vol. 70(279), pages 509-531, 08.
  6. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-22, April.
  7. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
  8. Peter Dolton & Mary Silles, 2001. "Over education in the graduate labour market: some evidence from alumni data," LSE Research Online Documents on Economics 19546, London School of Economics and Political Science, LSE Library.
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