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Overeducation at the Start of the Career: Stepping Stone or Trap?Stijn BaertGhent University Bart CockxGhent University - Sherppa - Faculty of Economics and Business Administration; IRES, Université Catholique de Louvain; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Dieter Verhaestaffiliation not provided to SSRN IZA Discussion Paper No. 6562 Abstract: This study investigates whether young unemployed graduates who accept a job below their level of education accelerate or delay the transition into a job that matches their level of education. We adopt the Timing of Events approach to identify this dynamic treatment effect using monthly calendar data from a representative sample of Flemish (Belgian) youth who started searching for a job right after leaving formal education. We find that overeducation is a trap. This trap is especially important early in the unemployment spell. Our results are robust across various specifications and for two overeducation measures.
Number of Pages in PDF File: 42 Keywords: dynamic treatment, duration analysis, school-to-work transitions, underemployment, overqualification JEL Classification: C21, C41, I21, J24, J64 working papers seriesDate posted: May 26, 2012Suggested CitationContact Information
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