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It’s a mismatch! Overeducation and career mobility in Germany

Author

Listed:
  • Roller Christiane

    (9142Ruhr University Bochum, Chair of Empirical Economics, Universitätsstr. 150, 44801Bochum, Germany)

  • Rulff Christian

    (9142Ruhr University Bochum, Chair of Empirical Economics, Universitätsstr. 150, 44801Bochum, Germany)

  • Tamminga Michael M.

    (9142Ruhr University Bochum, Chair of Empirical Economics, Universitätsstr. 150, 44801Bochum, Germany)

Abstract

The career mobility model suggests that overeducated workers are more prone to take up on-the-job training, to climb up the career ladder, or to leave to professions more suitable to their educational level. Our empirical analysis, using the German SOEP, confirms this theory for Germany. Comparing adequately qualified and overqualified workers in jobs that require the same level of formal qualification indicates that overeducated workers have a higher probability to take up on-the-job training and have a higher probability to move to jobs that better match their educational level. Furthermore, we find that overeducated workers experience higher wage growth than their adequately educated colleagues.

Suggested Citation

  • Roller Christiane & Rulff Christian & Tamminga Michael M., 2020. "It’s a mismatch! Overeducation and career mobility in Germany," German Economic Review, De Gruyter, vol. 21(4), pages 493-514, December.
    • Handle: RePEc:bpj:germec:v:21:y:2020:i:4:p:493-514:n:1
    DOI: 10.1515/ger-2019-0107
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    Cited by:

    1. Navarini, Lorenzo & Verhaest, Dieter, 2024. "Returns to Education and Overeducation Risk: A Dynamic Model," GLO Discussion Paper Series 1456, Global Labor Organization (GLO).

    More about this item

    Keywords

    Education; Educational Mismatch; Wages; Job Mobility; Training;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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