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Overeducation in the early career: an analysis using sequence techniques

Dieter Verhaest () and Tom Schatteman
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Tom Schatteman: Faculty of Applied Economics, Department of Economics, University of Antwerp

No 2010/09, Working Papers from Hogeschool-Universiteit Brussel, Faculteit Economie en Management

Abstract: We follow a sample of Flemish school leavers from secondary education and investigate their first seven years on the labour market by means of optimal matching sequence analysis. It is found that overeduca-tion can be a years-long trouble. About 30 to 40% stayed overeducated for nearly the full first seven years after labour market entry. Another 15 tot 25% combined overeducation with long periods of joblessness or stayed out of work for almost the full observation period. Risk factors to enter some of these disadvan-tageous trajectories are, amongst others, being female, having a non-Western background, having lower study results or living in a rural municipality. Finally, overeducation is also associated with low psychological well-being, particularly if it is preceded by a "good match" period or longer periods of joblessness. Nevertheless, that overeducation not should be a problem for the full career is illustrated by the 7% school leavers who were overeducated for a rather long period prior to find ultimately a good match.

Keywords: Overqualification; mismatch; underemployment; careers; unemployment; optimal matching (search for similar items in EconPapers)
JEL-codes: C19 J24 J62 J64 (search for similar items in EconPapers)
Pages: 38 page
Date: 2010-04
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