The Theory of Differential Overqualification: Does it Work?

16 Pages Posted: 18 Apr 2003

See all articles by Felix Büchel

Felix Büchel

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

Harminder Battu

University of Aberdeen - Business School and CELMR

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Abstract

The theory of differential overqualification, developed by Robert Frank (1978), claims that married women in smaller labour markets have a higher risk of working in jobs for which they are overqualified. This stems from the problem of dual job search for couples which is much more difficult to optimize than single job search. Here, for several reasons husbands tend to first optimize their individual job search. Their wives are 'tied movers' or 'tied stayers' in the sense that their job search is undertaken under the condition that the job search of their husbands is optimized. This leads especially in smaller labour markets to a higher risk of a mismatch between formal qualifications and job requirements. The only specific empirical test of this theory, until now, has been performed by McGoldrick and Robst (1996). Their results, using US data, do not support the theory. Using German panel data (GSOEP), we also test the theory of differential overqualification. Unlike previous studies we control for commuting distances and our own results provide some mixed support for the differential overqualification hypothesis.

Suggested Citation

Büchel, Felix and Battu, Harminder, The Theory of Differential Overqualification: Does it Work?. Available at SSRN: https://ssrn.com/abstract=377629

Felix Büchel (Contact Author)

Max Planck Institute for Human Development ( email )

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Institute for the Study of Labor (IZA)

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Harminder Battu

University of Aberdeen - Business School and CELMR ( email )

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Old Aberdeen AB24 3QY
+44 12 2427 2718 (Phone)

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