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Skill mismatch among UK graduates

Michela Vecchi (), Maja Savic and Marina Romiti

Economic Statistics Centre of Excellence (ESCoE) Discussion Papers from Economic Statistics Centre of Excellence (ESCoE)

Abstract: We examine graduates' skill mismatch in the UK focusing on unobserved abilities and academic background, including a distinction between UK and foreign degrees. Approximately 30 per cent of graduates in the UK are overqualified. Among UK-educated graduates, the incidence of overqualification is considerably lower, independent of graduates' nationality. Studying in a UK institution increases the chance of a good job match and has a positive effect on wages. Studying at more selective institutions and graduating with a first-class degree also promote good job matches and higher earnings. Our results suggest that improving graduates' skills, and a better match between foreign graduates and occupations, could be effective in reducing the skill mismatch.

Keywords: graduate's skills; overqualification; university background (search for similar items in EconPapers)
JEL-codes: I21 I26 J24 J31 (search for similar items in EconPapers)
Date: 2021-09
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