The economics of overeducation

Tsang, Mun C.; Levin, Henry M.

doi:10.1016/0272-7757(85)90051-2

Cited by 177 publications

(97 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The reasons for this job search are probably diverse, but it is assumed that job dissatisfaction is one of the main reasons for the job search behaviour of schoolleavers who have a job mismatch (Allen and Van der Velden, 2001). Job mismatches are an important cause of job dissatisfaction (Tsang and Levin, 1985;Burris, 1985), which provide an incentive for school-leavers to change jobs, hopefully leading to position that better matches their knowledge and skills.…”

Section: Labour Market Effects Of Job Mismatchesmentioning

confidence: 99%

Job Mismatches and their Labour-Market Effects among School-Leavers in Europe

Wolbers

2003

European Sociological Review

256

290

View full text Add to dashboard Cite

Section: Labour Market Effects Of Job Mismatchesmentioning

confidence: 99%

Job Mismatches and their Labour-Market Effects among School-Leavers in Europe

Wolbers

2003

European Sociological Review

256

290

View full text Add to dashboard Cite

“…Socially, it leads to the inefficient allocation of skilled workers to jobs with lower educational requirements, thus adversely affecting the economy's productivity and competitiveness (Tsang & Levin, 1985). From a worker's standpoint, the result may be frustration with their job prospects (Tsang, Russell, Rumberger, & Levin, 1991), reconsideration of the human capital investment decisions in future generations (García-Serrano & Malo, 1996), and a negative effect on wages.…”

Section: Introductionmentioning

confidence: 99%

Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995–2006)

Murillo

Rahona-López

Salinas-Jiménez

2012

Journal of Policy Modeling

View full text Add to dashboard Cite

Esta es la versión de autor del artículo publicado en: This is an author produced version of a paper published in:Journal of Policy Modeling 34 (2012) This study examines the effects of educational mismatch on wages in the Spanish labour market since the mid-nineties. First we study the evolution of returns to education and then we estimate returns to education in terms of the match between the worker's schooling and the job requirements. The results indicate that returns to education have declined since the mid-nineties. One also finds that the return associated with the job's required education is greater than that corresponding to the worker's actual schooling, and that the return on an additional year of attained education is positive but less than that of an additional year of required education. From a policy perspective, the existence of educational mismatch points to inefficiencies in the allocation of the educational resources. Investment on education can positively contribute to alleviate the unemployment problem in Spain, but taken into account the existence of educational mismatch it also becomes necessary to introduce structural reforms in order to adapt the job structure to a model of production based on knowledge so that the more highly qualified workers can find a job that corresponds to their educational level.JEL classification: I20; I29; J30

show abstract

“…Several labor market models have been developed to establish the theoretical foundations for the impact of overeducation on production. One model postulates that underemploymentwhether based on years of education or skills-may have adverse effects on productivity because workers with more education than required for the job may engage in counterproductive behavior in the workplace [12].…”

Section: Impact Of Higher Education On Economic Growthmentioning

confidence: 99%

The boom in university graduates and the risk of underemployment

Yamada¹

2015

izawol

View full text Add to dashboard Cite

the boom in university graduates and the risk of underemploymentBetter information on university quality may reduce underemployment and overeducation in developing countries Keywords: underemployment, university professionals, skilled labor, overeducation, higher education, educational mismatch ProsRegulating the quantity and quality of university graduates might reduce the probability of overeducation and professional underemployment. Preventing the unbridled growth of public and private universities could avoid waste of resources in low-return investments arising from information asymmetry about university quality. Regulating university quantity and quality would provide students with information on university quality and employability of graduates needed for better decisions on long-term investments in human capital. ConsLimiting growth in the number of university students may constrain improvements in the human capital stock of the economy. Limiting growth in the number of university students would reduce the economic and productivity growth potential of the economy. Intervening in the higher education market could impede the upward economic and social mobility of younger members of the population. Regulations affecting the quantity and quality of university graduates might be difficult to enforce in countries with weak institutional capacity. KEY FINdINGs ELEvatoR PItCHAs the number of secondary school graduates rises, many developing countries expand the supply of public and private universities or face pressure to do so. However, several factors point to the need for caution, including weak job markets, low-quality university programs, and job-education mismatches. More university graduates in this context could exacerbate unemployment, underemployment, and overeducation of professionals. Whether governments should regulate the quantity or quality of university programs, however, depends on the specific combination of factors in each country. autHoR's maIN mEssaGEA rapid increase in university graduates in developing countries might exacerbate overeducation and underemployment of professionals. Some regulation would seem necessary to reduce large differences in university quality and widespread information asymmetries. Options range from providing information on employability (by institution and career) to mandating quality assurance and licensing. Career quotas, moratoriums on expansion, and other extreme forms of quantitative control are inadvisable given rapid changes in market demand and weak enforcement capacity in most developing countries.

show abstract

The economics of overeducation

Cited by 177 publications

References 17 publications

Job Mismatches and their Labour-Market Effects among School-Leavers in Europe

Job Mismatches and their Labour-Market Effects among School-Leavers in Europe

Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995–2006)

The boom in university graduates and the risk of underemployment

Contact Info

Product

Resources

About