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What determines measured overeducation?

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  • D. VERHAEST
  • E. OMEY

Abstract

We analyse the determinants of overeducation among school leavers within a search theoretical framework. Overeducation is measured on the basis of job analysis (JA), the required level to get the job (RL) and realised matches (RM). It is shown that the choice of the measure is crucial for the outcome of the analysis. Job levels measured by RL and RM are clearly biased. Hence, only a few results are robust: higher qualified individuals occupy higher complexity jobs and overeducation is less prevalent among school leavers with better study results and in small organizations. Conversely, JA generally delivers results that are consistent with theoretical considerations. Based on JA, overeducation is also lower among men, whites, school leavers with higher educated parents, search intensive individuals and school leavers from higher quality institutions. Furthermore, overeducated workers are more often hired in occupations without structural bottleneck vacancies and in the financial and professional services sector. Additionally, irrespective of the used measure, heterogeneous requirements within complexity levels explain a significant but small part of the extent of overeducation.

Suggested Citation

  • D. Verhaest & E. Omey, 2004. "What determines measured overeducation?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/216, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:04/216
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    Cited by:

    1. Dieter Verhaest & Eddy Omey, 2006. "Measuring the Incidence of Over- and Undereducation," Quality & Quantity: International Journal of Methodology, Springer, vol. 40(5), pages 783-803, October.
    2. Jean-Pascal Guironnet, 2005. "La suréducation en France : Vers une dévalorisation des diplômes du supérieur ?," Working Papers 05-10, Association Française de Cliométrie (AFC).
    3. Mañé Vernet, Ferran & Miravet, Daniel, 2010. "Sobreeducación y Sobrecualificación en los Universitarios Catalanes. Una perspectiva de género," Working Papers 2072/179592, Universitat Rovira i Virgili, Department of Economics.
    4. Nielsen, Chantal Pohl, 2007. "Immigrant overeducation : evidence from Denmark," Policy Research Working Paper Series 4234, The World Bank.
    5. Verhaest, Dieter & Omey, Eddy, 2009. "Objective over-education and worker well-being: A shadow price approach," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 469-481, June.
    6. Guironnet, J.-P. & Peypoch, N., 2007. "Human capital allocation and overeducation: A measure of French productivity (1987, 1999)," Economic Modelling, Elsevier, vol. 24(3), pages 398-410, May.
    7. World Demographic and Ageing Forum & David Bell & Alison Bowes & Axel Heitmueller, 2007. "Did the Introduction of Free Personal Care in Scotland in a Reduction of Informal Care?," Journal Article y:2007:i:1, World Demographic and Ageing Forum.
    8. Dieter Verhaest & Eddy Omey, 2006. "Discriminating between alternative measures of over-education," Applied Economics, Taylor & Francis Journals, vol. 38(18), pages 2113-2120.
    9. Chantal Nielsen, 2011. "Immigrant over-education: evidence from Denmark," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 499-520, April.

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