Demand and Supply of Skilled Labour and Overeducation in Europe: A Country-level Analysis (original) (raw)
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The Effects of Macroeconomic Conditions at Graduation on Overeducation
Economic Inquiry, 2017
This paper shows that unfavourable economic conditions at graduation decrease the likelihood of a good job-worker match over a worker's subsequent career. Mismatch is quantified in terms of overeducation by both industry and occupation. The German SocioEconomic Panel and region-level unemployment rates from 1994-2012 are used. Instrumental Variables estimates account for endogenous graduation timing. A single percentage point increase in regional unemployment causes an increase in the probability of overeducation of 1.6-1.7 percentage points for university graduates. Effects for technical tertiary education and apprenticeship graduates are smaller. Labour market entry conditions affect workers for up to 9 years after graduation.
This paper examines the impact of an academic degree and field of study on short and long-term unemployment across Europe (EU15). Labour Force Survey (LFS) data on over half a million individuals are utilised for that purpose. The harmonized LFS classification of level of education and field of study overcomes past problems of comparability across Europe. The study analyses (i) the effect of an academic degree at a European level, (ii) the specific effect of 14 academic subjects and (iii) country specific effects. The results indicate that an academic degree is more effective on reducing the likelihood of short-term than long-term unemployment. This general pattern even though it is observed for most of the academic subjects its levels show significant variation across disciplines and countries.
Journal of Educational Cultural and Psychological Studies, 2011
According to theoretical and empirical evidence, young workers are more likely to be overeducated than adult ones, especially in countries where the educational attainment of young people is increasing rapidly and the school-to-work transition is difficult and lengthy. Nonetheless, if overeducation were simply a transitory phenomenon (an «entry condition» on the labour market) and expected to disappear during working life, it would not be a crucial problem. The aim of this paper is to investigate the transitory versus persistent nature of young workers' overeducation in different European countries. The analysis consists of two successive phases. Firstly, in order to take into account the role of work experience, I estimated individuals' overeducation risks using the competences frontier method. Secondly, I studied the «destination» of different cohorts of workers by applying a pseudo-panel technique to ECHP-Eurostat microdata referring to European Mediterranean countries * I wish to thank G. Croce, M. Capparucci, A. Verashchagina and two anonymous referees for providing helpful comments on an earlier version of this paper. The usual disclaimers apply.
The Overeducation Phenomenon in Europe
Revista Internacional de Sociología, 2009
The overeducation literature has typically assumed that the effect of overeducation on wages is constant across the conditional wage distribution. in this paper we use quantile regression and data from a group of European countries to show that differences across segments of the distribution are indeed large. We find significant differences between sexes, in the sense that it is not true that in countries where men are penalised more severely, women are also severely penalised. moreover, different trends are observed depending on the country and sex. for example in Germany, the wage penalty for overeducation is higher among women than men. furthermore, while the wage penalty for men increases from decile 10 to decile 90, the wage penalty decreases for women. in spain, women are more severely penalised for overeducation than men and the effect of overeducation is quite homogeneous across deciles for both men and women.
Determinants and wage effects of overeducation in Italy
SINAPPSI, 2022
This paper aims to study dimentions of educational mismatch and quantify its effects on wages. Using the Inapp-PLUS survey, we measure both overeducation/skilling and undereducation/skilling in Italy, providing five different measures of the educational mismatch: three of subjective type and two of objective type. They are also synthesized in a single indicator, able to give a measure of the degree of severity of overeducation. These measures are provided both for university graduates and for upper secondary school graduates. Results highlight that the condition of overeducation is typical of males, younger workers, people coming from lower-income families, informal channels of recruitment and with a humanistic educational background. Il contributo analizza le dimensioni del disallineamento istruzione-lavoro e stima l'effetto sui salari. Utilizzando l'indagine Inapp-PLUS, misuriamo sia la sovra-educazione che il sotto-inquadramento in Italia, fornendo cinque diverse misure del disallineamento educativo: tre di tipo soggettivo e due di tipo oggettivo. Da questi si ricava un indicatore sintetico che misura l'intensità della sovra-istruzione. Queste misure sono stimate sia per i laureati che per i diplomati della scuola secondaria superiore. I risultati evidenziano che la condizione di sovra-istruzione è tipica degli uomini, dei lavoratori più giovani, delle persone provenienti da famiglie a basso reddito, che hanno usato canali informali di reclutamento e con un percorso scolastico umanistico.
The Scarring Effects of Recessions : Over-education and Macroeconomic Conditions at Graduation
2015
This paper measures the impact of macroeconomic conditions on the education mismatch of workers in Germany. State-level unemployment rates from 1994-2012 are used as a measure of economic conditions and mismatch is quantified in terms of overeducation by both industry and occupation. Unfavorable economic conditions at the time of graduation significantly increase the probability that workers are overeducated in future jobs. IV estimates which account for potential endogeneity in graduation timing show that a single percentage point increase in state-level unemployment causes an increase in the probability of overeducation between 1.5 and 1.8% for university graduates. Impacts for graduates of more technical tertiary education programs and apprenticeships are much smaller. Labour market entry conditions appear to affect workers up to 18 years after graduation.
Overeducation and earnings: some further paneldata evidence
2009
It is generally found that overeducated workers earn less than adequately educated workers with similar years of education. We investigate whether this finding may be attributed to worker heterogeneity on the basis of panel data for Flemish school leavers and job analysis measurement. The estimated overeducation penalty at labour market entry diminishes but remains statistically significant after the inclusion of individual fixed effects. Yet, this penalty is found to drop with years of work experience. Our outcomes suggest that this drop results at least partly from the selection of overeducated individuals into better paying industries and firms.
The Impact of the Economic Crisis on Labour and Education in Europe
2010
In summer 2007, the US subprime crisis emerged and economic growth in industrialised countries started to slow down. The situation deteriorated after the default of Lehman Brothers in September 2008 and despite massive government interventions, the United States and most European countries slid into recession. We investigate the influence of the recent economic and financial crisis on European labour market