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Can entrepreneurship channel overqualification in young university graduates in the European Union?

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  • Crecente-Romero, Fernando
  • Giménez-Baldazo, Mónica
  • Rivera-Galicia, Luis F.

Abstract

Human Capital Theory states that the higher a person's educational level, the higher their productivity and earnings. However, young university graduates sometimes find it difficult to enter the labor market due to their overqualification. The increase of qualified workers entails a decrease in their salaries when employed by others. One solution to the personal and economic costs of overqualification may be the creation of self-employment through entrepreneurship. For this reason, the EU 2020 strategy includes entrepreneurship principles in all educational levels to improve employability. This research focuses on the European population of under-25-year-olds with tertiary studies between 2009 and 2014. FsQCA is used to analyze the relationships among early entrepreneurship rates (GEM), expenditure on tertiary education (Eurostat), and overqualification levels (OECD) by country. Our findings show that there is a relationship between qualified entrepreneurial activity and young people, but none between educational investment and the entrepreneurial activity of young people.

Suggested Citation

  • Crecente-Romero, Fernando & Giménez-Baldazo, Mónica & Rivera-Galicia, Luis F., 2018. "Can entrepreneurship channel overqualification in young university graduates in the European Union?," Journal of Business Research, Elsevier, vol. 89(C), pages 223-228.
    • Handle: RePEc:eee:jbrese:v:89:y:2018:i:c:p:223-228
    DOI: 10.1016/j.jbusres.2018.01.056
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    References listed on IDEAS

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    Cited by:

    1. Diana Escandon-Barbosa & David Urbano-Pulido & Andrea Hurtado-Ayala, 2019. "Exploring the Relationship between Formal and Informal Institutions, Social Capital, and Entrepreneurial Activity in Developing and Developed Countries," Sustainability, MDPI, vol. 11(2), pages 1-20, January.
    2. Carmen Păunescu & Mihaela Cornelia Popescu & Matthias Duennweber, 2018. "Factors Determining Desirability of Entrepreneurship in Romania," Sustainability, MDPI, vol. 10(11), pages 1-22, October.
    3. McIntyre, Nancy & Silva Quaye, Emmanuel & Anning-Dorson, Thomas & Lanivich, Stephen & Adomako, Samuel, 2023. "Investigating the impact of religiosity on entrepreneurial intentions," Journal of Business Research, Elsevier, vol. 156(C).
    4. Maribel Guerrero & Vesna Mandakovic & Mauricio Apablaza & Veronica Arriagada, 2021. "Are migrants in/from emerging economies more entrepreneurial than natives?," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 527-548, June.
    5. Yordanova Daniela, 2018. "University-industry cooperation for encouragement of graduating employability – methodology for evaluation," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 12(1), pages 1048-1058, May.

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