Abstract
Abstract This study investigates the incidence of overeducation among graduate workers in 21 European Union countries and its underlying factors based on the European Labor Force Survey 2016. Although controlling for a wide range of covariates, the particular interest lies in the role of fields of study for vertical educational mismatch. The study reveals country differences in the impact of these factors. Compared to Social sciences, male graduates from, for example, Education, Health and welfare, Engineering, and ICT (Information and Communication Technologies) are less and those from Services and Natural sciences are more at risk in a clear majority of countries. These findings are robust against changes of the standard education. Moreover, some fields show gender-specific risks. We suggest that occupational closure, productivity signals and gender stereotypes answer for these cross-field and cross-country differentials. Moreover, country fixed effects point to relevant structural differences between national labor markets and between educational systems.
Highlights
The term overeducation refers to a job match in which the educational level of the worker clearly exceeds the educational requirements of the job
Country fixed effects point to relevant structural differences between national labour markets and educational systems
Field choice might be triggered by individual gender role orientations and social origin (Polachek 1978, Bradley 2000), such that field-specific labour market outcomes are not purely causal effects but to some part driven by selection into fields
Summary
The term overeducation refers to a job match in which the educational level of the worker clearly exceeds the educational requirements of the job. In the terminology of labour economics, this is often considered a vertical skill mismatch, as opposed to horizontal mismatches (workers choosing jobs with requirements outside the scope of their field of study/apprenticeship). An overeducation status of qualified workers reflects a waste of scarce human capital. It can affect a worker’s job satisfaction. A skill mismatch can reduce overall work motivation, expressing itself in more frequent absenteeism and higher turnover of the workforce (Tsang and Levin, 1985; Sicherman, 1991; Sloane et al, 1999). Overeducation is associated with earnings losses (e.g. Daly et al, 2000; Bauer, 2002; Boll and Leppin, 2016)
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