Overeducation at the Start of the Career - Stepping Stone or Trap?
41 Pages Posted: 14 Jun 2012
Date Written: May 31, 2012
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.
Keywords: overqualification, underemployment, school-to-work transitions, duration analysis, dynamic treatment
JEL Classification: C210, C410, I210, J240, J640
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