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Overeducation at the start of the career - stepping stone or trap?

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  • S. BAERT
  • B. COCKX
  • D. VERHAEST

Abstract

This study investigates whether young unemployed graduates who accept a job below their level of education accelerate or delay the transition into a job that matches their level of education. We adopt the Timing of Events approach to identify this dynamic treatment effect using monthly calendar data from a representative sample of Flemish (Belgian) youth who started searching for a job right after leaving formal education. We find that overeducation is a trap. This trap is especially important early in the unemployment spell. Our results are robust across various specifications and for two overeducation measures.

Suggested Citation

  • S. Baert & B. Cockx & D. Verhaest, 2012. "Overeducation at the start of the career - stepping stone or trap?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 12/787, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:12/787
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    More about this item

    Keywords

    overqualification; underemployment; school-to-work transitions; duration analysis; dynamic treatment;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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