Overeducation in the labor market: a meta-analysis

This paper contains a meta-analysis of studies on overeducation and undered ucation in the labor market. It is found that of the four different definit ions of overeducation distinguished in the literature, only the one based o n variation in years of education within occupational groups appears to yie ld significantly lower-than-average rates of overeducation. The average rat e of undereducation in the labor market depends on the definition of the un dereducation variable. There is no indication that mismatches between educa tion supplied and education required for the job have increased significant ly in the past 20 years. The labor force growth rate has a positive effect on the incidence of overeducation, while the unemployment rate has a negati ve effect on the rate of return to education. (C) 2000 Elsevier Science Ltd . All rights reserved. JEL classification: J24; J31; J41.