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The utilization and reward of the human capital of immigrants in the labor market of the host country has been studied extensively. Using Swedish register data from 2001-2008, we extend the immigrant educational mismatch literature by analyzing incidence, wage effects and state dependence in overeducation among natives and immigrants. In line with previous research we find a higher incidence and a lower return to overeducation among immigrants indicating that immigrants lose more from being overeducated. We find a high degree of state dependence in overeducation both among natives and immigrants, but considerably higher among immigrants. JEL codes: J61, I21, J24, J31, F22

The starting point of this study is the seemingly striking similarity in the number of youth-oriented labour market policies adopted by the Nordic and the Baltic EU member states in 2013-14 despite markedly different welfare regimes. The similarities remain when concentrating on active labour market policies (ALMPs) and extending the observation period to 2007-15, but the application of a more refined coding scheme suggests that there are also notable cross-country differences. Estonia, Finland and Sweden are found to exhibit a relatively similar approach to youth-oriented ALMPs, while Denmark, Latvia and Lithuania are more distinct cases. The similarities in the policy effort can be explained by similar problem pressure, EU-guided policy learning and the provision of EU funding. Lastly, the policy approaches of the Nordic states indicate a path-dependency. Thus, while the youth-oriented policy effort may appear to be quite similar, important differences remain.