Who is Overeducated and Why? Probit and Dynamic Mixed Multinomial Logit Analyses of Vertical Mismatch in East and West Germany

Boll, Christina; Leppin, Julian Sebastian; Schömann, Klaus

doi:10.2139/ssrn.2463202

Cited by 15 publications

(22 citation statements)

References 60 publications

(13 reference statements)

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“…Individuals who work in bigger firms, employing eleven workers or more, have lower risk of overeducation. The same applies to individuals working in public-owned firms (similar finding is found for Germany by Boll, Leppin, & Schömann, 2016).…”

Section: Econometric Analysissupporting

confidence: 75%

A Side Effect of a University Boom: Rising Incidence of Overeducation among Tertiary Educated Workers in Poland

Baran¹

2018

EBR

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This paper analyses changes in overeducation incidence in Poland in 2006-2014. It finds that a rise in number of tertiary educated workers outpaced an increase in number of jobs requiring tertiary education, which resulted in a substantial growth of overeducation incidence. The overeducation increase was driven mainly by mild overeducation rather than severe overeducation. Overeducated workers are usually young with little job experience. Women are found at lower risk of severe overeducation compared to men, but relatively more at risk of mild overeducation. A low risk of overeducation is associated with having studied technical and health programmes.

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Section: Econometric Analysissupporting

confidence: 75%

A Side Effect of a University Boom: Rising Incidence of Overeducation among Tertiary Educated Workers in Poland

Baran¹

2018

EBR

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“…These questions are more important to estimate the skills mismatch, something that is completely different from educational mismatch. Recent literature has largely relied on worker's self-assessed approach, particularly, for skills mismatch (Dolton and Vingoles, 2000;Green and Zhu, 2010;Boll et al, 2016a). 6 If the variable capturing the level of education is accurate and continuous -like years of education-, one can use the average years of education plus one or two standard deviations.…”

Section: Measurement Of Educational and Skill Mismatchmentioning

confidence: 99%

Educational mismatch in Europe at the turn of the century

Llorente

Sarkar

Sebastian

et al. 2018

IJM

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Purpose. The purpose of this paper is to present the stylized facts of over-education among European graduates over time (1998)(1999)(2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013), paying special attention to the measurement issues. Design/methodology/approach. The authors use two different sources, the Programme for the International Assessment of Adult Competencies 2012, and the European Union Labour Force Survey 1998-2013, with two different aims. We employ the first one to make a detailed analysis of the different forms of measuring over-education and its implications in terms of the result obtained. The analysis of the second one responds to study the evolution and characteristics of over-education in Europe. Findings. In first place, the paper provides evidence of the high level of sensitivity of the level of measured over-education to the type of methodology used. Such difference is even higher when we focus on skills versus educational mismatch. The work also shows how with all their shortcomings, the measures of over-education used in the analysis point to the existence of convergence in over-education levels among the European countries of the sample (only interrupted by the crisis), in a context of reduction of over-education rates in many countries. Practical implications. Researchers should be particularly careful when estimating overeducation, because of the strong implications in terms of the so different results obtained when choosing between competing methods. Originality/value. The analysis abound in the implications of the use of different methodologies of estimating over-education in terms of both size and ranking among European countries. The production of long-run and updated estimates of over-education for a large sample of countries using a homogenous database and different estimation methods.

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“…Estimating a trivariate probit model, the authors show that a share of 18% of this raw state dependence can be attributed to a true state dependence effect. Employing the dynamic random-effects model proposed by Wooldridge (2005), the study by Boll et al (2016) also finds significant state dependence of overqualification in the German labour market for the time period from 1984 to 2011. The results are robust to the inclusion of two different measures for overqualification.…”

Section: Empirical Evidencementioning

confidence: 96%

“…A further potential mechanism could be that prolonged unemployment decreases the reservation wage and graduates are more likely to accept low-requirement job offers below their educational level (Stewart and Swaffield, 1999). For Germany, Boll et al (2016) find that previous unemployment increases the risk of overqualification.…”

Section: Explanatory Variablesmentioning

confidence: 98%

Dynamics of Overqualification: Evidence from the Early Career of Graduates

Erdsiek

2017

SSRN Journal

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This study analyses the persistence and true state dependence of overqualification, i.e. a mismatch between workers' qualifications and their jobs' educational requirements. Employing individual-level panel data for Germany, I find that overqualification is highly persistent among tertiary graduates over the first ten years of their career cycle. Accounting for unobserved heterogeneity, results from dynamic random-effects probit models suggest that only a small share of the observed persistence can be attributed to a true state dependence effect. Unobserved factors are found to be the main driver of the high persistence of overqualification. In particular, selection into initial overqualification at the start of the career is of high importance. Furthermore, overqualification persistence is shown to be partly attributable to observed heterogeneity in terms of ability and study characteristics.

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Who is Overeducated and Why? Probit and Dynamic Mixed Multinomial Logit Analyses of Vertical Mismatch in East and West Germany

Cited by 15 publications

References 60 publications

A Side Effect of a University Boom: Rising Incidence of Overeducation among Tertiary Educated Workers in Poland

A Side Effect of a University Boom: Rising Incidence of Overeducation among Tertiary Educated Workers in Poland

Educational mismatch in Europe at the turn of the century

Dynamics of Overqualification: Evidence from the Early Career of Graduates

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