Overeducation among Graduates from Universities of Applied Sciences: Determinants and Consequences

Andrea Diem

Abstract


This paper investigates the phenomenon of qualification mismatch (overeducation) among graduates from universities of applied sciences. Using data from the Swiss graduate surveys, it analyses the incidence of mismatch, determinants, and the connections with earnings and job satisfaction. Analyses show that a year after graduating around one sixth of those employed (17%) are in a job which does not match, or only partially matches, the qualifications they have acquired, and that this proportion is not diminishing significantly in the medium term. The risk of mismatch varies considerably, however, by subject area and final grade. In addition, the results indicate that employment below the level of qualification on entering professional life significantly raises the probability of mismatch in the following years too. Analyses of the impacts suggest that employment poorly matched to education and training is associated with an income penalty of around 5% in the short to medium term. Graduates in a mismatch situation also demonstrate less job satisfaction than those in a position matched to their qualification.


Keywords


Earnings; Job satisfaction; Overeducation; Universities of applied sciences.

Full Text:

PDF

References


Allen, J. & van der Velden, R. (2001). Educational mismatches versus skill mismatches: effects on wages, job satisfaction, and on‐the‐job search. Oxford Economic Papers, 53: 434-452. http://dx.doi.org/10.1093/oep/53.3.434

Andersson J., P., Gupta, N.D. & Wadensjö, E. (2014). Overeducation among immigrants in Sweden: incidence, wage effects and state dependence, IZA Journal of Migration, 3 (9): 1-23.

Barone, C. & Ortiz, L. (2011). Overeducation among European university graduates: a comparative analysis of its incidence and the importance of higher education differentiation. Higher Education, 61: 325-337. http://dx.doi.org/10.1007/s10734-010-9380-0

Becker, G.S. (1964). Human capital: a theoretical and empirical analysis, with special reference to education. New York: Columbia University Press.

BFS (2014). Befragungen der Hochschulabsolvent/innen. Ausbildungsniveauadäquanz der Hochschulabsolvent/innen, 2013. Retrieved from: http://www.bfs.admin.ch/bfs/portal/de/index/themen/15/06/data/blank/05.html (accessed 25 June 2014).

Büchel, F. & Mertens, A. (2004). Overeducation, undereducation, and the theory of career mobility. Applied Economics, 36: 803-816. http://dx.doi.org/10.1080/0003684042000229532

Carroll, D. & Tani, M. (2013). Over-education of recent higher education graduates: new Australian panel evidence. Economics of Education Review, 32: 207-218. http://dx.doi.org/10.1016/j.econedurev.2012.10.002

Chevalier, A. (2003). Measuring over-education. Economica, 70: 509-531. http://dx.doi.org/10.1111/1468-0335.t01-1-00296

Chevalier, A. & Lindley, J. (2009). Overeducation and the skills of UK graduates. Journal of the Royal Statistical Society, 172: 307-337. http://dx.doi.org/10.1111/j.1467-985X.2008.00578.x

Crosby, F. (1976). A model of egoistical relative deprivation. Psychological Review, 8: 85-113. http://dx.doi.org/10.1037/0033-295X.83.2.85

Cutillo, A. & Di Pietro, G. (2006). The effects of overeducation on wages in Italy: a bivariate selectivity approach. International Journal of Manpower, 27: 143-168. http://dx.doi.org/10.1108/01437720610666182

Diem, A. & Wolter, S.C. (2014). Overeducation among Swiss university graduates: determinants and consequences. Journal for Labour Market Research, 47: 313-328. http://dx.doi.org/10.1007/s12651-014-0164-3

Di Pietro, G. & Urwin, P. (2006). Education and skills mismatch in the Italian graduate labour market. Applied Economics, 38: 79-93. http://dx.doi.org/10.1080/00036840500215303

Dolton, P. & Silles, M. (2008). The effects of over-education on earnings in the graduate labour market. Economics of Education Review, 27: 125-139. http://dx.doi.org/10.1016/j.econedurev.2006.08.008

Dolton, P. & Vignoles, A. (2000). The incidence and effects of overeducation in the U.K. graduate labour market. Economics of Education Review, 19: 179-198. http://dx.doi.org/10.1016/S0272-7757(97)00036-8

Fehse, S. & Kerst, C. (2007). Arbeit unter Wert? Vertikal und horizontal inadäquate Beschäftigung von Hochschulabsolventen der Abschlussjahrgänge 1997 und 2001. Beiträge zur Hochschulforschung, 29 (1): 72-98.

Frei, C. & Sousa-Poza, A. (2012.) Overqualification: permanent or transitory? Applied Economics, 44: 1837-1847. http://dx.doi.org/10.1080/00036846.2011.554380

Frenette, M. (2004). The overqualified Canadian graduate: the role of the academic program in the incidence, persistence, and economic returns to overqualification. Economics of Education Review, 23: 29-45. http://dx.doi.org/10.1016/S0272-7757(03)00043-8

García-Espejo, I. & Ibá-ez, M. (2006). Educational-skill matches and labour achievements among graduates in Spain. European Sociological Review, 22: 141–156. http://dx.doi.org/10.1093/esr/jci048

Green, F. & McIntosh, S. (2007). Is there a genuine under-utilization of skills amongst the over-qualified? Applied Economics, 39: 427-439. http://dx.doi.org/10.1080/00036840500427700

Green, F. & Zhu, Y. (2010). Overqualification, job dissatisfaction, and increasing dispersion in the returns to graduate education. Oxford Economic Papers, 62: 740-763. http://dx.doi.org/10.1093/oep/gpq002

Groot, W. & Maassen van den Brink, H. (2000). Overeducation in the labor market: a meta-analysis. Economics of Education Review, 19: 149-158. http://dx.doi.org/10.1016/S0272-7757(99)00057-6

Hartog, J. (2000). Over-education and earnings: where are we, where should we go? Economics of Education Review, 19: 131-147. http://dx.doi.org/10.1016/S0272-7757(99)00050-3

Klein, M. (2010). Mechanisms for the effect of field of study on the transition from higher education to work. Working paper, 130, Mannheimer Zentrum für Europäische Sozialforschung.

Leuven, E. & Oosterbeek, H. (2012). Overeducation and mismatch in the labor market. In E.A. Hanushek, S. Machin & L. Woessmann (Eds.), Handbook of the economics of education, Volume 4, (pp. 283-326). Amsterdam: North Holland. http://dx.doi.org/10.1016/B978-0-444-53444-6.00003-1

Mavromaras, K., McGuinness, S. & Fok, Y.K. (2009). Assessing the incidence and wage effects of overskilling in the Australian labour market. Economic Record, 85: 60-72. http://dx.doi.org/10.1111/j.1475-4932.2008.00529.x

Mavromaras, K., McGuinness, S., O'Leary, N., Sloane, P.J. & Wei, Z. (2013). Job mismatches and labour market outcomes: panel evidence on university graduates. Economic Record, 89: 382-395. http://dx.doi.org/10.1111/1475-4932.12054

McGuinness, S. (2006). Overeducation in the labour market. Journal of Economic Surveys, 20: 387-418. http://dx.doi.org/10.1111/j.0950-0804.2006.00284.x

McGuinness, S. & Sloane, P.J. (2011). Labour market mismatch among UK graduates: an analysis using REFLEX data. Economics of Education Review, 30: 130-145. http://dx.doi.org/10.1016/j.econedurev.2010.07.006

McGuinness, S. & Wooden, M. (2009). Overskilling, job insecurity, and career mobility. Industrial Relations, 48: 265-286. http://dx.doi.org/10.1111/j.1468-232X.2009.00557.x

Mincer, J. (1974). Schooling, experience, and earnings. New York: Columbia University Press.

OECD, (2014). Education at a glance: OECD indicators. Paris: OECD Publishing.

Pecoraro, M. (2013). Incidence and wage effects of educational mismatch in the Swiss labour market (Doctoral dissertation). Université catholique de Louvain, Louvain-la-Neuve, Belgium.

Pecoraro, M. (2014). Is there still a wage penalty for being overeducated but well-matched in skills? A panel data analysis of a Swiss graduate cohort. Labour, 28: 309-337. http://dx.doi.org/10.1111/labr.12031

Plicht, H., Schober, K. & Schreyer, F. (1994). Zur Ausbildungsadäquanz der Beschäftigung von Hochschulabsolventinnen und -absolventen. Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, 27: 177-204.

Rubb, S. (2003). Overeducation in the labour market: a comment and re-analysis of a meta-analysis. Economics of Education Review, 22: 621-629. http://dx.doi.org/10.1016/S0272-7757(02)00077-8

Sánchez-Sánchez, N. & McGuinness, S. (2013). Decomposing the impacts of overeducation and overskilling on earnings and job satisfaction: an analysis using REFLEX data. Education Economics, published online, doi: 10.1080/09645292.2013.846297. http://dx.doi.org/10.1080/09645292.2013.846297

Sattinger, M. (1993). Assignment models of the distribution of earnings. Journal of Economic Literature, 31: 831-880.

Sicherman, N. & Galor, O. (1990). A theory of career mobility. Journal of Political Economy, 98: 169-192. http://dx.doi.org/10.1086/261674

Thurow, L.C. (1975). Generating inequality: mechanisms of distribution in the U.S. economy. New York: Basic Books.

Tsai, Y. (2010). Returns to overeducation: a longitudinal analysis of the U.S. labor market. Economics of Education Review, 29: 606-617. http://dx.doi.org/10.1016/j.econedurev.2010.01.001

Verhaest, D. & Omey, E. (2006). The impact of overeducation and its measurement. Social Indicators Research, 77: 419-448. http://dx.doi.org/10.1007/s11205-005-4276-6

Verhaest, D. & Omey, E. (2010). The determinants of overeducation: different measures, different outcomes? International Journal of Manpower, 31: 608-625. http://dx.doi.org/10.1108/01437721011073337

Verhaest, D. & Omey, E. (2012). Overeducation, undereducation and earnings: further evidence on the importance of ability and measurement error bias. Journal of Labor Research, 33: 76-90. http://dx.doi.org/10.1007/s12122-011-9125-6

Vieira, J.A.C. (2005). Skill mismatches and job satisfaction. Economics Letters, 89: 39-47. http://dx.doi.org/10.1016/j.econlet.2005.05.009

Wirz, A. & Atukeren, E. (2005). An analysis of perceived overqualification in the Swiss labor market. Economics Bulletin, 9 (2): 1-10.




DOI: http://dx.doi.org/10.18533/jefs.v3i02.105

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM

Refbacks

  • There are currently no refbacks.
';



Copyright (c) 2014 Andrea Diem

.............................................................................................................................

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

.............................................................................................................................

If you find difficulties in submitting manuscript please forward your doc file to support@journalofeconomics.org. Our support team will assist you in submission process and other technical matters. Please note that documents uploaded by yourself are reviewed more quickly than replies by e-mail.

In order to get notifications on inbox please add  this domain journalofeconomics.org in your email safe list.

.............................................................

ISSN 2379-9463(Print)
ISSN 2379-9471(Online)

...........................................................