Walter Van Trier

Overeducation in the Early Career of Secondary Education Graduates An Analysis Using Sequence Techniques

Based on monthly observations of their employment and overeducation status in the first seven years after leaving education, we use optimal matching sequence analysis to construct a typology of entry patterns of Flemish secondary education graduates. We find that for a significant number of young people, overeducation constitutes a persistent problem, affecting about half of the sample for nearly the full observation period. Investigating the risk factors shows factors, such as, having lower human capital endowments or facing job search constraints enhancing the risk of following disadvantageous trajectories. A lower reservation wage seems to make being persistently overeducated more likely. Yet, starting as ‘overeducated’ does not necessarily lead to being stuck as overeducated in the rest of the career. About 7 per cent of our sample succeeds in entering an adequate position even after being overeducated for a relatively long period.

The Impact of Educational Mismatches on Wages: The Influence of Measurement Error and Unobserved Heterogeneity

Abstract We investigate the differential impact of alternative combinations of horizontal and vertical educational mismatches on wages. By using panel data for Belgian graduates, we consider the role of unobserved worker heterogeneity. Random measurement error in both types of mismatches is accounted for by adopting instrumental variable techniques. We consistently find that overeducated individuals without field of study mismatch earn less than adequately educated workers with a similar educational background. However, for individuals who are working outside their field of study, such a wage penalty is not always observed once accounting for unobserved heterogeneity and random measurement error. In some cases, field of study mismatch even seems to be financially beneficial to the worker. These findings contribute to our understanding regarding the extent to which educational mismatches are truly problematic. The results call for policies that focus primarily on combatting vertical mismatches.

How to measure field-of-study mismatch? A comparative analysis of the different methods

We make a comparative analysis of the different methods used for the measurement of field-of-study mismatch. A first part of the paper reviews the literature, detailing and discussing the different approaches (worker assessments, job analysis, realized matches). In the second part, based on a data-set allowing us to use various measures, we investigate whether these different approaches result in differences with respect to the incidence and the determinants of field-of-study mismatch. Since substantial differences do indeed exist, even among variants of similar approaches, we conclude that empirical results with respect to field-of-study mismatch should be interpreted with great caution. While making several recommendations concerning the measurement of field-of-study mismatch, we also make a plea for more focused research on the validity and reliability of field-of-study mismatch measures in order to develop a more generally-accepted and uniform measure.