Overeducation Among Graduates: An Overlooked Facet of the Gender Pay Gap? Evidence from East and West Germany

Germany's occupational and sectoral change towards a knowledge-based economy calls for high returns to education. Nevertheless, female graduates are paid much less than their male counterparts. We wonder whether overeducation affects sexes differently and whether this might answer for part of the gender pay gap. We decompose total year of schooling in years of over- (O), required (R), and undereducation (U). As ORU earnings estimations based on German SOEP cross-section and panel data indicate, overeducation pays off less than required education in the current job even when unobserved heterogeneity is taken into account. Moreover, analyses of job satisfaction and self-assessed overeducation point to some real mismatch. However, overeducation does not matter for the gender pay gap. By contrast, women's fewer years of required education reasonably do, answering for 7.61 pp. of the East German (18.79 %) and 2.22 pp. of the West German (32.98 %) approximate gap. Moreover, job biography and the household context affect the gap more seriously in the old Bundesländer than in the new ones. Overall, the West German pay gap almost doubles the East German one, and different endowments answer for roughly three quarters of the approximate gap in the Western but only for two thirds in the Eastern part. We conclude that the gendered earnings gap among German graduates is rather shaped by an employment behaviour suiting traditional gender roles and assigned gender stereotypes than being subject to gendered educational inadequacy

Who is Overeducated and Why? Probit and Dynamic Mixed Multinomial Logit Analyses of Vertical Mismatch in East and West Germany

Overeducation is an often overlooked facet of untapped human resources. But who is overeducated and why? Relying on SOEP data 1984-2011, we use probit models for estimating the likelihood of entering overeducation and dynamic mixed multinomial logit models with random effects addressing state dependence and unobserved heterogeneity. As further robustness checks we use three specifications of the target variable, i.e. realized matches, self-assessment and twofold overeducation. We run separate analyses for men and women, East and West Germans and medium and highly educated persons. We find that overeducation is mainly state dependent. Nonetheless, even in the dynamic context staying employed proves to be risk-decreasing. By contrast, scars of past unemployment show up in a higher mismatch risk. Moreover, an employer change does not serve as a suitable exit strategy, and a dual qualification does not show up as a valid insurance against graduates' job mismatch. Overall, effects largely depend on the operationalization of overeducation. We conclude that to combat overeducation, focusing on continuous employment careers and circumventing unintentional withdrawals from the current job is crucial. Moreover, institutional impediments that restrain job match quality for certain groups (migrants, mothers) have to be tackled.Überqualifikation ist ein zuweilen übersehener Aspekt in der Debatte um ungenutzte Fachkräftepotenziale. Aber wer ist überqualifiziert, und warum? Basierend auf Daten des Sozio-oekonomischen Panels (SOEP) der Wellen 1984-2011 schätzen wir mit Probitmodellen die Wahrscheinlichkeit für neue Überqualifikation sowie mit dynamischen Multinomialen Mixed Logit-Modellen mit zufälligen Effekten die Wahrscheinlichkeit für Überqualifikation unter Berücksichtigung von Pfadabhängigkeit und unbeobachteter Populationsheterogenität. Das Messfehlerproblem kontrollieren wir durch drei verschiedene Spezifikationen der abhängigen Variable, die selbsteingeschätzte Überqualifikation, die statistische Überqualifikation (Realized Matches) sowie eine Kombination aus beidem. Wir führen die Schätzungen getrennt für Männer und Frauen, Ost- und Westdeutsche sowie Personen mittlerer und hoher Bildung durch. Unsere Analysen zeigen, dass Überqualifikation ein hohes Beharrungsvermögen hat. Allerdings vermindert Erwerbserfahrung das Risiko der Überqualifikation auch im dynamischen Modell unter Kontrolle unbeobachteter Heterogenität. Narbeneffekte früherer Arbeitslosigkeit hingegen zeigen sich in einem höheren Überqualifikationsrisiko. Weder ein Arbeitgeberwechsel noch (bei Akademiker/innen) eine Doppelqualifikation in Form von Lehre plus Studium taugen als wirksame Ausweichstrategien. Um Überqualifikation im Job zu vermindern, scheinen Strategien, die konti-nuierliche Erwerbskarrieren fördern, vielversprechend zu sein. Für bestimmte Gruppen am Arbeitsmarkt (Migranten, Mütter) erschweren zudem institutionelle Barrieren ein gutes Jobmatch, die es gezielt anzugehen gilt

Recognition of Prior Learning for Highly Skilled Refugees’ Labour Market Integration

Abstract In the integration of highly skilled refugees, recognition of their prior learning is a key factor. One concern is the object of the recognition process, the formal and the actual competence of the individual. Another concern is the subject of the process, the refugee. Starting from the individual and her/his experience and competence entails a different process and results than starting from professional regulations and labour market needs. A final concern is the process of recognition. Recognition processes could be seen solely as a matter of classification and assessment, but this misses that fact that the recognition process also means a learning process for the individual. This article discusses problems and opportunities relating to the recognition of prior learning targeting highly skilled refugees in relationship with these three concerns of object, subject and process of recognition

Sweden: steeply rising older workers' employment rates in a late-exit country

Sweden has very high employment rates for all age groups and both men and women. Effective retirement age is even rising after pension reforms with a flexibilization of the statutory retirement age. Incentives are given for later withdrawal and longer working careers, since pensions are based on all earnings during working life. Disability pensions are the most important pathway for early exits out of the labor market for all age groups, even though the rules for eligibility had been restricted in the reforms. Occupational pensions as “early” exit gain importance for over 60-year-olds, with more highly educated workers being more likely to take advantage of occupational pensions as an early exit route. This highlights the importance of education for retirement timing