Is Employment Polarization Creating More Over-Educated Workers? Evidence from Germany, Spain, Sweden and UK

31 Pages Posted: 27 Sep 2016 Last revised: 9 Oct 2016

Date Written: September 25, 2016

Abstract

This study explores if declining employment in routine middle-skilled jobs as a result of technological change is creating more over-educated workers in the low skilled non-routine manual jobs. Using data from European Labour Force Survey covering the period from 1999 to 2007, the paper analyses employment change and over-education in four countries of Europe – Germany, Spain, Sweden and UK. The results suggest higher incidence of over-education in polarized countries – Spain and UK as compared to countries with employment upgrading – Germany and Sweden. It also reveals that in Spain and UK, over-education is prominent and increasing over time in the low paid jobs which are mostly non-routine manual in nature, while Germany and Sweden have more over-educated workers in middle skilled routine and high skilled analytical jobs. I find similar results in both descriptive and job fixed effects regressions.

Keywords: Over-education, job polarization, mismatch, employment change

JEL Classification: J24, J21, P52

Suggested Citation

Sarkar, Sudipa, Is Employment Polarization Creating More Over-Educated Workers? Evidence from Germany, Spain, Sweden and UK (September 25, 2016). Available at SSRN: https://ssrn.com/abstract=2843173 or http://dx.doi.org/10.2139/ssrn.2843173

Sudipa Sarkar (Contact Author)

University of Warwick ( email )

University of Warwick, Institute for Employment Re
Coventry, cv47al
United Kingdom

HOME PAGE: http://https://www2.warwick.ac.uk/fac/soc/ier/people/ssarkar

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