Over-education of recent higher education graduates: New Australian panel evidence

David Carroll and Max Tani

Economics of Education Review, 2013, vol. 32, issue C, 207-218

Abstract: This study investigates the incidence of over-education amongst recent Australian bachelor degree graduates and its effect on their earnings. We find that between 24% and 37% of graduates were over-educated shortly after course completion, with over-education most common amongst young females and least common amongst older females. Over-education rates vary markedly across major fields of study and appear to be associated with the relative demand for graduate labour. Overeducation was less common three years after course completion; however a nontrivial proportion of graduates remain over-educated. With regard to the effect of over-education on earnings, we find a notable age-related effect not reported in earlier studies. Young over-educated graduates were not penalised after unobserved heterogeneity had been addressed, whereas older over-educated graduates were at an earnings disadvantage relative to their well-matched peers.

Keywords: Over-education; Graduate labour market; Human capital (search for similar items in EconPapers)
JEL-codes: I23 J24 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (36)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:32:y:2013:i:c:p:207-218

DOI: 10.1016/j.econedurev.2012.10.002

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