Abstract
This paper focuses on labor market outcomes of young college graduates in the US, analyzing the nexus between migration, overeducation, and economic conditions. A series of overeducation probit models are estimated, using data from the March Supplements of the Current Population Survey, 2000–2014. We find that labor migrants are less prone to being overeducated as unemployment rates increase. For stayers, in contrast, we find a positive link between overeducation propensities and unemployment rates. As a result of this response divergence, overeducation probabilities of stayers exceed those of movers during times of medium to high unemployment rates. The results are robust to various definitions of overeducation and various sample restrictions.
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Notes
In the US in 2012, for example, the interstate migration rate among young workers with a college degree was 5.6 %, and 52.1 % of those moves were motivated by a new job or job search. In comparison, for those without a college degree, the interstate migration rate was only 2.7 %, and only about 37.6 % of those moves were motivated by searching for, or accepting a new job (March Supplement, 2012 Current Population Survey).
The European Union takes an active role in trying to reduce such regional disparities by implementing policies that enhance spatial flexibility, for example the European Employment Service (EURES) that encourages and facilitates migration across borders (European Commission,https://ec.europa.eu/eures/public/homepage).
See Van der Velden and Van Smoorenburg (1997) for an overview.
The most common occupations among college graduates are shown in the Appendix (Table 7), together with their definition-specific overeducation classifications.
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Waldorf, B., Yun, S. Labor migration and overeducation among young college graduates. Rev Reg Res 36, 99–119 (2016). https://doi.org/10.1007/s10037-015-0101-0
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DOI: https://doi.org/10.1007/s10037-015-0101-0