Overeducation and Local Labour Markets in Spain

Abstract

Abstract:The objective of this paper is to analyse the influence of individual variables and some spatial mobility characteristics of regional labour markets on overeducation in Spain. To achieve this aim, we use microdata from the Spanish Budget Household Survey to estimate a probit model for the probability of overeducation while accounting for sample selection and the presence of data at different levels (individuals and territory). The obtained results permit us to conclude that the sizes of local labour markets and the possibility of extending the job search to other labour markets by commuting are relevant factors in explaining overeducation in the Spanish labour market. In spite of differences in labour market institutions, our results are very similar to those obtained for other countries, particularly when working with more recent data.

Job Accessibility, Employment and Job-Education Mismatch in the Metropolitan Area of Barcelona

“…[ Nevertheless, the bivariate relationship between private and public transport accessibility to the workplace, employment and job-education mismatch that we observed in the raw data is likely to be confounded by other individual and family/household characteristics that co-vary with these 8 The incidence of overeducation that we obtain from our sample (about 16% and similar for males and females) is somewhat lower than what was reported in other studies of the Spanish economy (see Ramos & Sanromà, 2013 for a review), probably because our data refers to the metropolitan area of Barcelona where the demand for high-skilled work is substantially higher than in other parts of the Spanish territory.…”

“…In doing so, we will face two main econometric problems. First, given that job-education mismatch can be observed only among employed individuals, the job-education mismatch equation should be estimated on the condition of sample-selection based on unobservable factors that affect both employment decisions and job quality (following Büchel & Van Ham, 2003, Jauhiainen, 2011, Rubb, 2011, Devillanova, 2013, Sanromà & Ramos 2013and Croce & Ghignoni, 2013. Second, we consider private transport availability to represent a potential determinant of both employment and job-education mismatch, which is also likely to be related with unobservable factors that affect these two labour market outcomes (as noted by Raphael & Rice 2002, Gurley & Bruce 2005, Baum 2009, Bansak et al, 2010.…”

Imbalanced Job Polarization and Skills Mismatch in Europe

“…Finding a good match in a larger labour market should be easier, and in Europe, the risk of overeducation in big cities is indeed substantially smaller than elsewhere (Ramos and Sanromá 2013;Tarvid 2012), although the reverse is observed in the US (Beckhusen et al 2013). Working without a contract substantially increases the risk of overeducation, and this result is stable across European country groups (Tarvid 2012).…”

“…Personality traits also affect the risk of overeducation and frequently are more important than ability (Blázquez and Budría 2012;Tarvid 2013). Empirical evidence about gender effects has been mixed, with roughly equal number of studies concluding that women have a higher skills mismatch risk than men (Aleksynska and Tritah 2013;Baert et al 2013;Betti et al 2011;Karakaya et al 2007;Ramos and Sanromá 2013;Tani 2012;Verhaest and Omey 2010;Verhaest and Van der Velden 2013) as those finding no difference across sex (Blázquez and Budría 2012;Büchel and van Ham 2003;Chevalier 2003;Chevalier and Lindley 2009;Frei and Sousa-Poza 2012;Frenette 2004;Støslashren and Wiers-Jenssen 2010;Wirz and Atukeren 2005); a few studies result in men being at a relative disadvantage (European Commission 2012;Kiersztyn 2013).…”

Evidence on the Wage Returns of Advanced Vocational Training and University Education in Spain

“…an imbalance between the number of graduates and the number of jobs available for which a degree is required. This excess supply produces situations of overeducation and, consequently, lower wages (see, among others, Alba-Ramírez, 1993;Alba-Ramirez and Blázquez, 2004;Blázquez, 2005;Groot, 1993;Murillo, Rahona and Salinas, 2012;Nieto, 2014;Ramos and Sanromá, 2013). …”