Causes of overeducation in the Australian labour market
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2005-06
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Melbourne Authors
Affiliation
Economics and Commerce: Department of Economics
Document Type
Preprint
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Linsley, Ingrid (2005) Causes of overeducation in the Australian labour market.
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Open Access
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Description
Research Paper Number 940, ISSN 0819-2642, ISBN 0 7340 2596 3
Abstract
Overeducation is a form of labour underutilisation which occurs when the formaleducation level of a worker exceeds that which is required for the job. In Australiaclose to 30 per cent of workers are overeducated and are underutilising their skills.Using data from the Negotiating the Life Course survey, this study determines thecauses of overeducation in Australia. Four of the key theories that have been used toexplain overeducation are tested: human capital, job competition, assignment andthe career mobility theories. Tests show that the job competition model best explainsthe existence of overeducation in the Australian labour market.
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Keywords
Overeducation, Labour market, Human capital theory, Career mobility, I21 - Analysis of education, J24 - Human capital, Skills, Occupational choice, Labor productivity, J62 - Job, Occupational and intergenerational mobility