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Cross-country differences in graduate overeducation and its persistence

  • Verhaest Dieter
  • Velden Rolf van der

    (ROA rm)

We investigate the factors that contribute to the cross-country variation in graduateovereducation and its persistence by means of multi-level analysis. Our analysis is basedon data from representative surveys among graduates in thirteen European countries andJapan and focuses on the jobs six months and five years after graduation. Major factorsto explain the cross-country variation in overeducation and its persistence are found tobe differences in the structural imbalance between the overall demand and supply ofskilled workers, differences in the imbalance between the demanded and supplied fieldsof study and differences in the business cycle at the time of graduation. Also the qualityand orientation (general versus vocational) of the educational program are important, butparticularly to explain within-country differences. Finally, labour market institutions suchas the strictness of the employment protection legislation are found to be less important.

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Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 007.

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Date of creation: 2010
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Handle: RePEc:unm:umaror:2010007
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  4. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
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  7. Dieter Verhaest & Eddy Omey, 2010. "The determinants of overeducation: different measures, different outcomes?," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 608-625, September.
  8. Juan J. Dolado & Marcel Jansen & Juan F. Jimeno, 2008. "On the job search in a matching model with heterogeneous jobs and workers," Banco de Espa�a Working Papers 0813, Banco de Espa�a.
  9. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen.
  10. Acemoglu, D., 1997. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," Working papers 97-14, Massachusetts Institute of Technology (MIT), Department of Economics.
  11. Groeneveld, Sandra & Hartog, Joop, 2003. "Overeducation, Wages and Promotions within the Firm," IZA Discussion Papers 883, Institute for the Study of Labor (IZA).
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  13. Green, Francis & McIntosh, Steven & Vignoles, Anna, 2002. "The Utilization of Education and Skills: Evidence from Britain," Manchester School, University of Manchester, vol. 70(6), pages 792-811, December.
  14. D. Verhaest & E. Omey, 2008. "Objective overeducation and worker well-being: a shadow price approach," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/514, Ghent University, Faculty of Economics and Business Administration.
  15. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of Economics, MIT Press, vol. 87(3), pages 355-74, August.
  16. Paul J . Devereux, 2002. "Occupational Upgrading and the Business Cycle," LABOUR, CEIS, vol. 16(3), pages 423-452, 09.
  17. Giorgio Di Pietro & Andrea Cutillo, 2006. "University Quality and Labour Market Outcomes in Italy," LABOUR, CEIS, vol. 20(1), pages 37-62, 03.
  18. 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.
  19. Rubb, Stephen, 2003. "Overeducation: a short or long run phenomenon for individuals?," Economics of Education Review, Elsevier, vol. 22(4), pages 389-394, August.
  20. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
  21. Renes, Gusta & Ridder, Geert, 1995. "Are women overqualified," Labour Economics, Elsevier, vol. 2(1), pages 3-18, March.
  22. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
  23. 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.
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