This paper analyses the incidence of overeducation of university graduates. To this end, we estimate a random effects model for a panel of European countries. Our results do not confirm that the increase of the supply of qualified labour per se can be seen as a relevant factor fuelling overeducation. The relative wage of university graduates is inversely related to overeducation. This finding suggests a role for the demand for qualified labour. Cyclical conditions also matter, as overeducation operates as a short-term adjustment mechanism. This result sheds new light on the possible effects of the recession currently hitting the industrialized countries and on policy measures needed to foster economic recovery. © 2012 ACES. All rights reserved.

Demand and supply of skilled labour and overeducation in Europe: A country-level analysis / Croce, Giuseppe; Ghignoni, Emanuela. - In: COMPARATIVE ECONOMIC STUDIES. - ISSN 0888-7233. - STAMPA. - 54:2(2012), pp. 413-439. [10.1057/ces.2012.12]

Demand and supply of skilled labour and overeducation in Europe: A country-level analysis

CROCE, Giuseppe;GHIGNONI, Emanuela
2012

Abstract

This paper analyses the incidence of overeducation of university graduates. To this end, we estimate a random effects model for a panel of European countries. Our results do not confirm that the increase of the supply of qualified labour per se can be seen as a relevant factor fuelling overeducation. The relative wage of university graduates is inversely related to overeducation. This finding suggests a role for the demand for qualified labour. Cyclical conditions also matter, as overeducation operates as a short-term adjustment mechanism. This result sheds new light on the possible effects of the recession currently hitting the industrialized countries and on policy measures needed to foster economic recovery. © 2012 ACES. All rights reserved.
2012
output gap; overeducation; panel data; skill-biased technical change; university graduates
01 Pubblicazione su rivista::01a Articolo in rivista
Demand and supply of skilled labour and overeducation in Europe: A country-level analysis / Croce, Giuseppe; Ghignoni, Emanuela. - In: COMPARATIVE ECONOMIC STUDIES. - ISSN 0888-7233. - STAMPA. - 54:2(2012), pp. 413-439. [10.1057/ces.2012.12]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/436356
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