This article assesses the extent to which the impact of overeducation and overskilling on labour market outcomes such as earnings and job satisfaction relate to mismatches in particular competency areas. The analysis uses REFLEX data, which collects information about 19 key competence areas related to job performance. We find that the penalties to…

The incidence of overeducation in eight European countries is here assessed by means of multiple indicators. With the exception of Spain, the results reveal that overeducation is a minor risk amongst European tertiary graduates. Yet, the contrast between different indicators reveals the existence of an overeducation of a moderate kind in countries…

A theoretical approach is formulated that connects various theories of why education has an effect on labour market outcomes with institutional settings in which such theories provide the most likely mechanism. Three groups of mechanisms are distinguished: education as an indicator of productive skills, as a positional good and as a means for…