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Overeducation among Italian graduates: do different measures diverge?

Luca Cattani (), Giovanni Guidetti and Giulio Pedrini ()
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Giovanni Guidetti: University of Bologna
Giulio Pedrini: University of Milan-Bicocca

Economia Politica: Journal of Analytical and Institutional Economics, 2018, vol. 35, issue 2, 491-521

Abstract: Abstract In this paper, we explore three dimensions of educational mismatch among graduates: incidence, impact on earnings and possible determinants. Our analysis focuses on Italian graduates and refers to the cohort that graduated in 2007 using data from the AlmaLaurea survey on graduates entering the labour market. A new measure of overeducation is introduced and jointly examined along with an alternative measure based on workers’ self-assessment. After having run estimates of the impact of overeducation on earnings and analyzed possible determinants of educational mismatch, we conclude that the two definitions of overeducation measure quite different things and in particular that “traditional” measures based on workers’ self-assessment are affected by individuals’ characteristics and by workers’ expectations and perceptions concerning the job post. However, effects on wages are very similar no matter what definition is adopted.

Keywords: Educational mismatches; Human capital; Graduate labour markets (search for similar items in EconPapers)
JEL-codes: I26 J31 J24 (search for similar items in EconPapers)
Date: 2018
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