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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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File URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:e8179466-cf5e-438a-815c-f8f34ddd0916/datastreams/ASSET1/content
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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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