Overeducation at the Start of the Career - Stepping Stone or Trap?

41 Pages Posted: 14 Jun 2012

See all articles by Stijn Baert

Stijn Baert

Ghent University; University of Antwerp; Catholic University of Louvain (UCL); Institute for the Study of Labor (IZA)

Bart Cockx

Ghent 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)

Dieter Verhaest

Hogeschool-Universiteit Brussel (HUBrussel)

Multiple version iconThere are 2 versions of this paper

Date Written: May 31, 2012

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.

Keywords: overqualification, underemployment, school-to-work transitions, duration analysis, dynamic treatment

JEL Classification: C210, C410, I210, J240, J640

Suggested Citation

Baert, Stijn and Cockx, Bart L. W. and Verhaest, Dieter, Overeducation at the Start of the Career - Stepping Stone or Trap? (May 31, 2012). CESifo Working Paper Series No. 3825. Available at SSRN: https://ssrn.com/abstract=2084057

Stijn Baert (Contact Author)

Ghent University ( email )

University of Antwerp ( email )

Prinsstraat 13
Antwerp, Antwerp 2000
Belgium

HOME PAGE: http://https://www.uantwerpen.be/nl/personeel/stijn-baert/

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://https://www.uclouvain.be/en-309318.html

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/en/webcontent/personnel/photos/index_html?key=6832

Bart L. W. Cockx

Ghent University - Sherppa - Faculty of Economics and Business Administration ( email )

Ghent, B-9000
Belgium

IRES, Université Catholique de Louvain

Place Montesquieu, 3
Louvain-la-Neuve
Belgium

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Dieter Verhaest

Hogeschool-Universiteit Brussel (HUBrussel) ( email )

Stormstraat 2
Brussels, 1000
Belgium

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