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Overeducation is one of the most important mechanisms for labour
market adjustment when there is an excess supply of highly skilled
workers. However, there is much debate about the consequences of
this phenomena and the short- and long-term effects for both the
overeducated worker and the economy as a whole. This book
contributes to our understanding of recent developments in the
research on overeducation by providing a detailed overview of the
pertinent theoretical and policy issues. The authors study evidence
that a substantial number of workers in Europe are overqualified
and challenge the wisdom of greater investments in the education of
the workforce. Although it may appear a waste of resources if many
workers have a higher level of education than their job requires,
others argue that overeducation may actually facilitate the
development of a competitive and dynamic knowledge-based economy in
Europe. They move on to look at labour mobility and skill
mismatches in the labour market, and examine the impact of
overeducation on earnings. They also address the somewhat
controversial issue of how to measure employee overqualification,
and propose an income ratio based on the difference between actual
and potential earnings as an effective approach. Finally, they look
at the effect of overeducation on specific groups in society such
as licensed professionals, university graduates and ethnic
minorities. Economists, social scientists, and academics interested
in labour market theory and policy will find this an insightful and
original volume which will make an important addition to the
literature on overeducation.
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