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The incidence and determinants of overeducation in Belgium

Gungor Karakaya, Robert Plasman () and Francois Rycx ()

Brussels Economic Review, 2005, vol. 48, issue 1-2, 113-136

Abstract: This paper examines the incidence and determinants of overeducation in the Belgian private sector. Two different approaches are used to define overeducation by means of data on characteristics of employees and employers. Using the 1995 Structure of Earnings Survey, it is found that between 22 and 24% of the workforce is overeducated. Results support the idea that labour market experience is treated by employers as a substitute for formal education. They also show that male workers, people employed in state-owned firms and apprentices/trainees are less affected by overeducation. Further results suggest that the size of the establishment has a very weak (negative) impact on overeducation.

Keywords: Education; Human capital; Skill mismatch; Crowding out (search for similar items in EconPapers)
JEL-codes: E24 J24 (search for similar items in EconPapers)
Date: 2005
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Handle: RePEc:bxr:bxrceb:y:2005:v:48:i:1-2:p:113-135