Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Education Quarterly Reviews

ISSN 2621-5799

asia institute of research, journal of education, education journal, education quarterly reviews, education publication, education call for papers
asia institute of research, journal of education, education journal, education quarterly reviews, education publication, education call for papers
asia institute of research, journal of education, education journal, education quarterly reviews, education publication, education call for papers
asia institute of research, journal of education, education journal, education quarterly reviews, education publication, education call for papers
crossref
doi
open access

Published: 11 June 2021

Overeducation Among Saudi Graduates in the Labour Market: Incidence and Determinants Across Two Self-Assessment Measures

Mohammed Alzubaidi

King Abdulaziz University, Saudi Arabia

asia institute of research, journal of education, education journal, education quarterly reviews, education publication, education call for papers
pdf download

Download Full-Text Pdf

doi

10.31014/aior.1993.04.02.295

Pages: 469-497

Keywords: Education–Job Mismatch, Overeducation, Graduates, Labour Market, Saudi Arabia, Worker Self-Assessment

Abstract

Education expansion has prompted an extensive body of literature on the issue of overeducation, particularly in developed countries. However, as is the case for many developing countries, little, if any, empirical evidence from Saudi Arabia has emerged on this topic. Using cross-sectional survey data, this study examined the prevalence and possible determinants of overeducation among Saudi graduates in the labour market on the basis of two different self-assessment measures. Results indicated that nearly 50% of Saudi graduates in the study were considered overeducated based on each measure, while about 41% were consistently considered overeducated based on both measures. Using logistic regression models, several individual and job characteristics were deemed as major determinants of the probability of being overeducated across both measures. Furthermore, the two measures largely overlapped and yielded somewhat similar conclusions in terms of both the estimates and determinants of overeducation among graduates. The plausible implications of the results for education and labour market policies are discussed.

References

  1. Acar, E. Ö. (2016). The effects of education-job mismatch on wages: A panel analysis of the Turkish labour market. International Journal of Economics and Administrative Studies, 1(18), 339–354. https://doi.org/10.2016/Yayına

  2. Akhtar, M., Javed, M., & Noreen, S. (2018). Analysis of education occupation mismatch at Pakistani educational institutions. Journal of Educational Research, 21(2), 175–189. http://jer.iub.edu.pk/journals/JER-Vol-21.No-2/15.pdf

  3. Al-Asmari, M. G. H. (2008). Saudi labor force: Challenges and ambitions. JKAU: Arts & Humanities, 16(2), 19–59.

  4. Aleksynska, M., & Tritah, A. (2013). Occupation-education mismatch of immigrant workers in Europe: Context and policies. Economics of Education Review, 36, 229–244. https://doi.org/10.1016/j.econedurev.2013.06.001

  5. Allen, J., & Van der Velden, R. (2001). Educational mismatches versus skill mismatches: Effects on wages, job satisfaction, and on-the-job search. Oxford Economic Papers, 3, 434–452. https://doi.org/10.1093/oep/53.3.434

  6. Alpin, C., Shackleton, J. R., & Walsh, S. (1998). Over- and undereducation in the UK graduate labour market. Studies in Higher Education, 23(1), 17–34. https://doi.org/10.1080/03075079812331380462

  7. Alzubaidi, M. A. (2020). The impact of overeducation on job outcomes: Evidence from Saudi Arabia. International Journal of Research in Business and Social Science, 9(4), 104–120. https://doi.org/10.20525/ijrbs.v9i4.768

  8. Badillo-Amador, L., García-Sánchez, A., & Vila, L. E. (2005). Mismatches in the Spanish labor market: Education vs. competence match. International Advances in Economic Research, 11(1), 93–109. https://doi.org/10.1007/s11294-004-7491-z

  9. Baert, S., Cockx, B., & Verhaest, D. (2013). Overeducation at the start of the career: Stepping stone or trap? Labour Economics, 25, 123–140. https://doi.org/10.1016/j.labeco.2013.04.013

  10. Barro, R. (2001). Human capital and growth. American Economic Review, 91(2), 12–17. https://doi.org/10.1257/aer.91.2.12.

  11. Battu, H., Sloane, P. J., & Belfield, C. R. (2000). How well can we measure graduate over-education and its effects? National Institute Economic Review, 171(1), 82–93. https://doi.org/10.1177/002795010017100107

  12. Belfield, C. (2010). Over-education: What influence does the workplace have? Economics of Education Review, 29(2), 236–245. https://doi.org/10.1016/j.econedurev.2009.08.001

  13. Box, G. E. P., & Tidwell, P. W. (1962). Transformation of the independent variables. Technometrics, 4(4), 531–550. https://doi.org/10.1080/00401706.1962.10490038

  14. Budría, S., & Moro-Egido, A. I. (2018). Qualification and skill mismatches: Europe in a cross-national perspective. Cuadernos Económicos de ICE, 95, 151–188. https://doi.org/10.32796/cice.2018.95.6646

  15. Capsada-Munsech, Q. (2015). The role of social origin and field of study on graduates’ overeducation: the case of Italy. Higher Education, 69(5), 779–807. https://doi.org/10.1007/s10734-014-9805-2

  16. Capsada-Munsech, Q. (2017). Overeducation: Concept, theories, and empirical evidence. Sociology Compass, 11(10), 1–17. https://doi.org/10.1111/soc4.12518

  17. Capsada-Munsech, Q. (2019). Measuring Overeducation: Incidence, Correlation and Overlaps Across Indicators and Countries. Social Indicators Research, 145(1), 279–301. https://doi.org/10.1007/s11205-019-02112-0

  18. Caroleo, F. E., & Pastore, F. (2018). Overeducation at a glance. Determinants and wage effects of the educational mismatch based on AlmaLaurea data. Social Indicators Research, 137(3), 999–1032. https://doi.org/10.1007/s11205-017-1641-1

  19. Carroll, D., & Tani, M. (2013). Over-education of recent higher education graduates: New Australian panel evidence. Economics of Education Review, 32(1), 207–218. https://doi.org/10.1016/j.econedurev.2012.10.002

  20. Castagnetti, C., Rosti, L., & Töpfer, M. (2018). Overeducation and the gender pay gap in Italy. International Journal of Manpower, 39(5), 710–730. https://doi.org/10.1108/IJM-12-2016-0235

  21. Cattani, L., Guidetti, G., & Pedrini, G. (2018). Overeducation among Italian graduates: Do different measures diverge? Economia Politica, 35(2), 491–521. https://doi.org/10.1007/s40888-017-0075-1

  22. Center for Statistical Research. (2010). Dirasat Mla’emht Khariji Mu’asasat Al-t’elym w Al-tadrib Li-mutatalabat Suq Al-amal B’almamlakh Al-arabiah Al-saeudia [A study of the suitability of graduates of education and training institutions to the requirements of the labour market in the Kingdom of Saudi Arabia]. National Observatory for Labor, Ministry of Labor.

  23. Chevalier, A. (2003). Measuring over-education. Economica, 70(279), 509–531. https://doi.org/10.1111/1468-0335.t01-1-00296

  24. Chevalier, A., & Lindley, J. (2009). Overeducation and the skills of UK graduates. Journal of the Royal Statistical Society: Series A (Statistics in Society), 172(2), 307–37. https://doi.org/10.1111/j.1467-985X.2008.00578.x

  25. Congregado, E., Iglesias, J., Millán, J. M., & Román, C. (2016). Incidence, effects, dynamics and routes out of overqualification in Europe: a comprehensive analysis distinguishing by employment status. Applied Economics, 48(5), 411–445. https://doi.org/10.1080/00036846.2015.1083080

  26. Davia, M. A., McGuinness, S., & O’Connell, P. J. (2017). Determinants of regional differences in rates of overeducation in Europe. Social Science Research, 63, 67–80. https://doi.org/10.1016/j.ssresearch.2016.09.009

  27. Dekker, R., De Grip, A., & Heijke, H. (2002). The effects of training and overeducation on career mobility in a segmented labour market. International Journal of Manpower, 23(2),106-125. https://doi.org/10.1108/01437720210428379

  28. Di Paolo, A., & Mañé, F. (2016). Misusing our talent? Overeducation, overskilling and skill underutilisation among Spanish PhD graduates. Economic and Labour Relations Review, 27(4), 432–452. https://doi.org/10.1177/1035304616657479

  29. Dolton, P. J., & Vignoles, A. (1997). Overeducation duration: how long did graduates in the 1980s take to get a graduate job? (Working Paper). University of Newcastle upon Tyne.

  30. Dolton, P., & Silles, M. (2001). Over-education in the graduate labour market: Some evidence from alumni data. Centre for the Economics of Education, London School of Economics and Political Science. http://cee.lse.ac.uk/ceedps/CEEDP09.pdf

  31. Dolton, P., & Silles, M. (2008). The effects of over-education on earnings in the graduate labour market. Economics of Education Review, 27(2), 125–139. https://doi.org/10.1016/j.econedurev.2006.08.008

  32. Dolton, P., & Vignoles, A. (2000). The incidence and effects of overeducation in the U.K. graduate labour market. Economics of Education Review, 19(2), 179–198. https://doi.org/10.1016/S0272-7757(97)00036-8

  33. Duman, A. (2018). Education mismatches in the labor markets and their impact on wages across sectors: evidence from Turkey. Sosyoekonomi, 26(37), 227–242. https://doi.org/10.17233/sosyoekonomi.2018.03.13

  34. Duncan, G. J., & Hoffman, S. D. (1981). The incidence and wage effects of overeducation. Economics of Education Review, 1(1), 75–86. https://doi.org/10.1016/0272-7757(81)90028-5

  35. Edwards, J. R. (1991). Person-job fit: A conceptual integration, literature review, and methodological critique. In C. L. Cooper et al (Eds.), International Review of Industrial and Organizational Psychology (pp. 283–357). John Wiley & Sons.

  36. El-Hamidi, F. (2009). Education-occupation mismatch and the effect on wages of Egyptian workers(ERF Working Paper Series No. 474). Economic Research Forum. https://erf.org.eg/publications/education-occupation-mismatch-effect-wages-egyptian-workers

  37. Evidence for Policy Design, Harvard Kennedy School. (2015). Back to work in a new economy: Background paper on the Saudi labor market. Ministry of Labor and Human Resources Development Fund. https://epod.cid.harvard.edu/sites/default/files/inline-files/hks-mol_background_paper_-_full_-_april_2015.pdf

  38. Farooq, S. (2011). Mismatch between education and occupation: A case study of Pakistani graduates. Pakistan Development Review, 50(4), 531–553. https://doi.org/10.30541/v50i4IIpp.531-553

  39. Farooq, S., & Ahmed, U. (2007). Underemployment, education, and job satisfaction. Pakistan Development Review, 46(4), 895–907. https://doi.org/10.30541/v46i4IIpp.895-907

  40. Feldman, D. C. (1996). The nature, antecedents and consequences of underemployment. Journal of Management, 22(3), 385–407. https://doi.org/10.1016/S0149-2063(96)90030-6

  41. Flisi, S., Goglio, V., Meroni, E. C., Rodrigues, M., & Vera-Toscano, E. (2017). Measuring occupational mismatch: overeducation and overskill in Europe—evidence from PIAAC. Social Indicators Research, 131(3), 1211–1249. https://doi.org/10.1007/s11205-016-1292-7

  42. Frank, R. H. (1978). Why women earn less: The theory and estimation of differential overqualification. American Economic Review, 68(3), 360–373. http://www.jstor.org/stable/1805267

  43. General Authority for Statistics. (2019). Labour market bulletins: Third quarter. https://stats.gov.sa/sites/default/files/labour_market_3q_2019.pdf

  44. Görg, H., & Strobl, E. (2003). The incidence of visible underemployment: Evidence for Trinidad and Tobago. Journal of Development Studies, 39(3), 37–41. https://doi.org/10.1080/00220380412331322831

  45. Green, F., & McIntosh, S. (2007). Is there a genuine under-utilization of skills amongst the over-qualified? Applied Economics, 39(4), 427–439. https://doi.org/10.1080/00036840500427700

  46. Green, F., & Zhu, Y. (2010). Overqualification, job dissatisfaction, and increasing dispersion in the returns to graduate education. Oxford Economic Papers, 62(4), 740–763. https://doi.org/10.1093/oep/gpq002

  47. Green, F., McIntosh, S., & Vignoles, A. (1999). Overeducation and skills - clarifying the concepts (CEP Discussion Paper No. 435). Centre for Economic Performance, London School of Economics and Political Science. http://eprints.lse.ac.uk/id/eprint/20210

  48. Green, F., McIntosh, S., & Vignoles, A. (2002). The utilization of education and skills: evidence from Britain. The Manchester School, 70(6), 792–811. https://doi.org/10.1111/1467-9957.00325

  49. Groot, W., & Maassen van den Brink, H. (2000). Overeducation in the labor market: A meta-analysis. Economics of Education Review, 19(2), 149–158. https://doi.org/10.1016/S0272-7757(99)00057-6

  50. Habibi, N. (2015, July 15). Is Saudi Arabia training too many university graduates? University World News. https://universityworldnews.com/post.php?story=20150714013422488

  51. Habibi, N., & El-Hamidi, F. (2016). Why are Egyptian youth burning their university diplomas? The overeducation crisis in Egypt (Middle East Brief No. 102). Crown Center for the Middle East Studies, Brandeis University. https://doi.org/10.2139/ssrn.3054086

  52. Haddad, G. R. K., & Habibi, N. (2017). Vertical skill mismatch and wage consequences in low-skilled jobs: Evidence from Iran. International Labour Review, 156(1), 45–72. https://doi.org/10.1111/ilr.12000

  53. Handel, M. J., Valerio, A., & Puerta, M. L. S. (2016). Accounting for mismatch in low- and middle-Income countries: Measurement, magnitudes, and explanations. World Bank Group.https://doi.org/10.1596/978-1-4648-0908-8

  54. Hartog, J. (2000). Over-education and earnings: Where are we, where should we go? Economics of Education Review, 19(2), 131–147. https://doi.org/10.1016/S0272-7757(99)00050-3

  55. Hersch, J. (1995). Optimal mismatch and promotions. Economic Inquiry, 33(4), 611–624. https://doi.org/10.1111/j.1465-7295.1995.tb01884.x

  56. Kthiri, W. (2019). Over-education in the Tunisian labour market: Characteristics and determinants (EMNES Working Paper No. 22). Euro-Mediterranean Network for Economic Studies. https://www.euneighbours.eu/en/south/stay-informed/publications/emnes-working-paper-22-over-education-tunisian-labour-market

  57. Leana, C. R., & Feldman, D. C. (1995). Finding new jobs after a plant closing: Antecedents and outcomes of the occurrence and quality of reemployment. Human Relations, 48(12). 1381–1401. https://doi.org/10.1177/001872679504801201

  58. Leuven, E., & Oosterbeek, H. (2011). Over-education and mismatch in the labor market. In E. Hanusek et al (Eds.), Handbook of the Economics of Education (pp. 282–386). Elsevier. https://doi.org/10.1016/B978-0-444-53444-6.00003-1

  59. Li, I. W., & Miller, P. W. (2015). Overeducation and earnings in the Australian graduate labour market: An application of the Vahey model. Education Economics, 23(1), 63–83. https://doi.org/10.1080/09645292.2013.772954

  60. Lim, H. E. (2013). Overeducation and gappiness in the Malaysian graduate labour market. International Journal of Business and Society, 14(1), 93–110. http://repo.uum.edu.my/id/eprint/10104

  61. Linsley, I. (2005). Causes of overeducation in the Australian labour market. Australian Journal of Labour Economics, 8(2), 121–143.

  62. Luksyte, A., & Spitzmueller, C. (2011). Behavioral science approaches to studying underemployment. In D. C. Maynard & D. C. Feldman (Eds.), Underemployment: Psychological, Economic, and Social Challenges (pp. 35–56). Springer. https://doi.org/10.1007/978-1-4419-9413-4_3

  63. Mason, G. (1996). Graduate utilisation in British industry: The initial impact of mass higher education. National Institute Economic Review, 156(1), 93–103. https://doi.org/10.1177/002795019615600108

  64. Mavromaras, K., Mcguinness, S., O’Leary, N., Sloane, P., & Fok, Y. K. (2010). The problem of overskilling in Australia and Britain. The Manchester School, 78(3), 219–241. https://doi.org/10.1111/j.1467-9957.2009.02136.x

  65. Maynard, D. C., Joseph, T. A., & Maynard, A. M. (2006). Underemployment, job attitudes, and turnover intentions. Journal of Organizational Behavior, 27(4), 509–536. https://doi.org/10.1002/job.389

  66. McGoldrick, K., & Robst, J. (1996). Gender differences in overeducation: A test of the theory of differential overqualification. American Economic Review, 86(2), 280–284. https://jstor.org/stable/2118137

  67. McGuinness, S. (2006). Overeducation in the labour market. Journal of Economic Surveys, 20(3), 387–419. https://doi.org/10.1111/j.0950-0804.2006.00284.x

  68. McGuinness, S., Bergin, A., & Whelan, A. (2018). Overeducation in Europe: Trends, convergence, and drivers. Oxford Economic Papers, 70(4), 994–1015. https://doi.org/10.1093/oep/gpy022

  69. McGuinness, S., Pouliakas, K., & Redmond, P. (2018). Skills mismatch: Concepts, measurement and policy approaches. Journal of Economic Surveys, 32(4), 985–1015. https://doi.org/10.1111/joes.12254

  70. Mehta, A., Felipe, J., Quising, P., & Camingue, S. (2011). Overeducation in developing economies: How can we test for it, and what does it mean? Economics of Education Review, 30(6), 1334–1347. https://doi.org/10.1016/j.econedurev.2011.06.004

  71. Mercan, M. A., Karakas, M., Citci, S. H., & Babacan, M. (2015). Sector-based analysis of the education-occupation mismatch in the Turkish labor market. Educational Sciences: Theory & Practice, 15(2), 397–407. https://doi.org/10.12738/estp.2015.2.2362

  72. Ministry of Education. (2020). Higher education statistics (1980–2018) [Electronic data set]. https://departments.moe.gov.sa/Statistics/Educationstatistics/Pages/HEStats.aspx

  73. Ministry of Finance. (2020). Budget statement: Fiscal year 2020.https://www.mof.gov.sa/en/financialreport/budget2020/Documents/Bud-Eng2020.pdf

  74. Ministry of Labor and Social Development. (2016). Saudi Arabia labor market report 2016(3rd ed.).

  75. Murillo, I. P., Rahona-López, M., & Salinas-Jiménez, M. del M. (2012). Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995-2006). Journal of Policy Modeling, 34(5), 646–659. https://doi.org/10.1016/j.jpolmod.2011.07.012

  76. Nielsen, C. P. (2011). Immigrant over-education: Evidence from Denmark. Journal of Population Economics, 24(2), 499–520. https://doi.org/10.1007/s00148-009-0293-0

  77. Organisation for Economic Co-operation and Development. (2020). Education at a glance 2020: OECD indicators. OECD Publishing. https://doi.org/10.1787/69096873-en

  78. Ortiz, L., & Kucel, A. (2008). Do fields of study matter for over-education? The cases of Spain and Germany. International Journal of Comparative Sociology, 49(4–5), 305–327. https://doi.org/10.1177/0020715208093079

  79. Psacharopoulos, G. (1994). Returns to investment in education: A global update. World Development, 22(9), 1325–1343. https://doi.org/10.1016/0305-750x(94)90007-8

  80. Quinn, M. A., & Rubb, S. (2006). Mexico’s labor market: The importance of education-occupation matching on wages and productivity in developing countries. Economics of Education Review, 25( 2), 147–156. https://doi.org/10.1016/j.econedurev.2005.01.003

  81. Quintini, G. (2011). Over-qualified or under-skilled: A review of existing literature(OECD Social, Employment and Migration Working Papers No. 121). OECD. http://ideas.repec.org/p/oec/elsaab/121-en.html

  82. Reimer, D., Noelke, C., & Kucel, A. (2008). Labor market effects of field of study in comparative perspective: An analysis of 22 European countries. International Journal of Comparative Sociology, 49(4–5), 233–256. https://doi.org/10.1177/0020715208093076

  83. Robst, J. (2008). Overeducation and college major: Expanding the definition of mismatch between schooling and jobs. The Manchester School, 76(4), 349–368 https://doi.org/10.1111/j.1467-9957.2008.01064.x

  84. Sadeq, T. (2014). Formal-informal gap in return to schooling and penalty to education-occupation mismatch: A comparative study for Egypt, Jordan, and Palestine (ERF Working Paper Series No. 894). Economic Research Forum. https://erf.org.eg/app/uploads/2015/12/894.pdf

  85. Salinas-Jiménez, M. del M., Artés, J., & Salinas-Jiménez, J. (2016). Educational mismatch and job aspirations: A subjective wellbeing analysis using quantile regression. International Journal of Manpower, 37(1), 115–134. https://doi.org/10.1108/IJM-12-2014-0266

  86. Sam, V. (2018). Impacts of educational mismatches in developing countries with a focus on Cambodia(HAL Id: tel-02136222) [Doctoral dissertation, Université Grenoble Alpes]. HAL archives-ouvertes. https://tel.archives-ouvertes.fr/tel-02136222

  87. Sicherman, N. (1991). Overeducation in the labor market. Journal of Labor Economics, 9(2), 101–122. https://doi.org/10.1086/298261

  88. Sparreboom, T., & Staneva, A. A. (2014). Is education the solution to decent work for youth in developing economies? Identifying qualifications mismatch from 28 school-to-work transition surveys (ILO Work4Youth Publication Series No. 23). International Labour Office. https://un.org/youthenvoy/wp-content/uploads/2014/10/Work4Youth-Publication.pdf

  89. Tarvid, A. (2015). The role of industry in the prevalence of overeducation in Europe. Procedia Economics and Finance, 30(15), 876–884. https://doi.org/10.1016/S2212-5671(15)01337-4

  90. Turmo-Garuz, J., Bartual-Figueras, M. T., & Sierra-Martinez, F. J. (2019). Factors associated with overeducation among recent graduates during labour market integration: The case of Catalonia (Spain). Social Indicators Research, 144, 1273–1301. https://doi.org/10.1007/s11205-019-02086-z

  91. Vahey, S. P. (2000). The great Canadian training robbery: Evidence on the returns to educational mismatch. Economics of Education Review, 19(2), 219–227. https://doi.org/10.1016/S0272-7757(98)00029-6

  92. van der Velden, R. K. W., & van Smoorenburg, M. S. M. (1997). The measurement of overeducation and undereducation: Self-report vs. job-analyst method (ROA Research Memoranda No. 2E). Research Centre for Education and the Labour Market, Maastricht University. https://ideas.repec.org/p/unm/umaror/1997002.html

  93. Velasco, M. (2000). Evidence on graduate over-education in Europe: Underutilization of educational skills and unrealized expectations, La Asociación Libre de Economía. http://alde.es/encuentros/anteriores/xeea/trabajos/s/pdf/044.pdf

  94. Verhaest, D., & Omey, E. (2006). Discriminating between alternative measures of over-education. Applied Economics, 38(18), 2113–2120. https://doi.org/10.1080/00036840500427387

  95. Verhaest, D., & Omey, E. (2006a). The impact of overeducation and its measurement. Social Indicators Research, 77(3), 419–448. https://doi.org/10.1007/s11205-005-4276-6

  96. Verhaest, D., & Omey, E. (2010). The determinants of overeducation: Different measures, different outcomes? International Journal of Manpower, 31(6), 608–625. https://doi.org/10.1108/01437721011073337

  97. Verhaest, D., & van der Velden, R. (2013). Cross-country differences in graduate overeducation. European Sociological Review, 29(3), 642–53. https://doi.org/10.1093/esr/jcs044

  98. Yang, J., & Mayston, D. (2012). Impact of overeducation on wages in China. Chinese Economy, 45(2), 65–89. https://doi.org/10.2753/CES1097-1475450204

  99. Zakariya, Z. (2017). Job mismatch and on-the-job search behavior among university graduates in Malaysia. Asian Economic Journal, 31(4), 355–379. https://doi.org/10.1111/asej.12135

  100. Zakariya, Z. (2019). Returns to education: What does over-education play?’ Journal of Contemporary Issues and Thought, 3(1), 138–155. http://myjurnal.my/public/article-view.php?id=83999

  101. Zakariya, Z., & Battu, H. (2013). The effects of overeducation on multiple job satisfaction towards enhancing individuals’ well-being in Malaysia. Business Management Quarterly Review, 4(3 & 4), 36–51. http://ir.uitm.edu.my/id/eprint/8743