"Overeducation is one of the most important mechanisms for labor market adjustment when there is an excess supply of high-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 recent recession has led to an ongoing crisis in the youth labour market in Europe. This timely book deals with a number of areas related to the context, choices and experiences of young people, the consequences of which resonate throughout their lives. The focus of the contributions to this volume is on issues which, whilst undoubtedly important, have thus far received less attention than they arguably deserve. The first part of the book is concerned with issues related to education and training, covering matters such as the role of monopsony in training, the consequences of over-education, and the quality of educational institutions from primary to tertiary. The second part is primarily concerned with the long-term consequences of short-term choices and experiences including contributions on health-related choices, health consequences later in life, factors affecting the home-leaving decision, as well as an analysis of the increasing intergenerational transmission of inequality; a trend which accelerated during the recession. The last part of the book deals with issues related to youth unemployment and NEET – the direct consequence of the recession. This book contains a number of innovative analyses reporting significant findings that contrast with standard models. Some of the more interesting results directly contradict conventional wisdom on a number of topics from the importance of monopsony in training markets to the importance of transitory income changes on consumption of addictive goods. This book is suitable for those who study labor economics, political economy as well as employment and unemployment.

"This paper examines patterns in overeducation between countries using a specifically designed panel dataset constructed from the quarterly Labour Force Surveys of 28 EU countries over a twelve to fifteen year period. It is not the case that overeducation has been rising rapidly over time in all countries and where overeducation has grown the trend has been very gradual. Furthermore, overeducation rates were found to be static or falling in approximately fifty percent of the 28 EU countries. The evidence points towards convergence in overeducation at a rate of 3.3 percent per annum. In terms of the determinants of overeducation we find evidence to support policies aimed at improving effective female participation, labour market flexibility and the practical aspects of educational provision as a means of reducing the incidence of overeducation within countries."--Abstract.

This paper uses data from the Cedefop European Skills and Jobs (ESJ) survey, a new international dataset of adult workers in 28 EU countries, to decompose the wage penalty of overeducated workers. The ESJ survey allows for integration of a rich, previously unavailable, set of factors in the estimation of the effect of overeducation on earnings. Oaxaca decomposition techniques are employed to uncover the extent to which the overeducation wage penalty can be attributed to either (i) human capital attributes, (ii) job characteristics, (iii) information asymmetries, (iv) compensating job attributes or (v) skill needs of jobs. Differences in human capital and job-skill requirements are important factors in explaining the wage premium.It is found that asymmetry of information accounts for a significant part of the overeducation wage penalty for tertiary education graduates, whereas job characteristics and low skill content of jobs explain most of the wage gap for medium-qualified employees. Little evidence is found in favour of equilibrium theories of skills matching and compensating wage differentials. The paper thus highlights the need for customised policy responses (e.g. career guidance; policies to raise job quality) to tackle overeducation.

This timely analysis examines the complex state of youth unemployment across Europe and offers cogent policy suggestions for addressing this longstanding societal problem. The findings reveal numerous national and regional factors affecting youth joblessness—not only market and economic challenges, but also deep sociocultural and political dynamics underlying the situations. Coverage details how the standard transition from school to work is disrupted in an already depressed adult job market, and compares a wide range of responses in terms of both young people’s educational decision-making and national youth policy. In particular, contributors assess whether the current crop of Youth Guarantee programs can/should be a model for employment policy across the continent. Among the topics covered: Youth labour market prospects and recent policy developments. Youth labour market in Central and Eastern Europe. Early school dropout in Spain: evolution during the Great Recession. Overeducation among European university graduates: a constraint or a choice? Promoting youth employment in Europe: evidence-based policy lessons. The evaluation of a Finnish youth guarantee: lessons for Europe? European Youth Labour Markets is of interest to an international audience of economists, sociologists, and leaders in governmental, non-profit, and corporate sectors through its broad and comparative macroeconomic focus and implications for policymaking, research, resource allocation, and policy evaluation.

This volume contains original research articles which analyze the linkages between education and skills and the causes and consequences of different types of skill mismatch. The volume yields new insights regarding overeducation, underskilling, graduate jobs, wages returns to skills, aggregate productivity, job complexity and skill development.