Overeducation, Regional Labor Markets and Spatial Flexibility

15 Pages Posted: 8 Feb 2002

See all articles by Felix Büchel

Felix Büchel

Max Planck Institute for Human Development; Institute for the Study of Labor (IZA)

Maarten van Ham

Delft University of Technology - OTB Research Institute for Housing, Urban and Mobility Studies; University of St. Andrews; IZA Institute of Labor Economics

Date Written: February 2002

Abstract

For most workers, access to suitable employment is severely restricted by the fact that they look for jobs in the regional labor market rather than the global one. In this paper we analyze how macro-level opportunities (regional labor market characteristics) and micro-level restrictions (the extent to which job searchers are restricted to the regional labor market) can help to explain the phenomenon of overeducation. For the purposes of this project we obtained special permission to link regional data supplied by the German Federal Office for Building and Regional Planning to data provided by the respondents in the German Socio-Economic Panel (GSOEP), based on their region of residence. The use of multilevel models made it possible to combine both individual and regional characteristics in the same models. In addition, we used the Heckman two-step procedure to control for selective access to employment. The results show that the size of the labor market is an important factor in avoiding overeducation: looking for a job on a large labor market increases the probability of finding a suitable job. Access to a car for personal use and a longer commuting time reduce the risk of working in a job for which one is overeducated.

Keywords: Overeducation, Regional Labor Markets, Spatial Flexibility, Multilevel Models

JEL Classification: J61, J62, J24, J44, I21

Suggested Citation

Büchel, Felix and van Ham, Maarten, Overeducation, Regional Labor Markets and Spatial Flexibility (February 2002). IZA Discussion Paper No. 424, Available at SSRN: https://ssrn.com/abstract=299687

Felix Büchel (Contact Author)

Max Planck Institute for Human Development ( email )

Lentzeallee 94
D-14195 Berlin, 14195
Germany
+49 30 8240 6427 (Phone)
+49 30 8249 939 (Fax)

Institute for the Study of Labor (IZA)

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

Maarten Van Ham

Delft University of Technology - OTB Research Institute for Housing, Urban and Mobility Studies ( email )

P.O. Box 5043
2600 GA Delft
Netherlands
+31 15 278 2782 (Phone)

HOME PAGE: http://www.maartenvanham.nl

University of St. Andrews ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

IZA Institute of Labor Economics

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

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