Overeducation - new evidence for 25 European countries

This study investigates the incidence of overeducation among workers in the EU and its underlying factors based on the most recent wave of the European Labor Force Survey (EU-LFS 2013). Its main purpose is to shed light on the interplay of so far neglected explanatory factors such as household characteristics and field of study as well as to reveal country differences in the impact of these factors on vertical mismatch. Therefore, our innovative features are the large number of determinants as well as the considerable amount of European countries simultaneously analyzed. Moreover, we differentiate in our analysis between high- and medium-skilled workers. Our findings point to a considerable variation in the potential determinants of overeducation across countries as well as across skill levels. This variation is not restricted to job-related characteristics, but interestingly also concerns household variables. Among those determinants showing a largely uniform influence are nationality, job tenure, temporary employment and presence of unemployed household members.