First Name: David
Department Dept of Economics
Supervisor(s): A/Prof Massimiliano Tani , Dr Chris Heaton
Job search and over-education in the Australian graduate labour market
This paper examines the association between job search and over-education in the Australian graduate labour market. Other determinants of over-education are also investigated.
While the existence of over-educated graduates in the labour market is well documented, there is only limited evidence on the determinants of over-education. One likely determinant that has received little attention is job search, which has been shown in other studies to influence employment outcomes.
Key literature/theoretical perspective
Over-education; job search
This paper is based on pooled cross sectional data from the Australian Graduate Survey (spanning 2003-11) and panel data from the 2011 Beyond Graduation Survey. Both data sets focus on recent graduates. Determinants are investigated using Heckman probit models (pooled data) and Mundlak-corrected random-effects models (panel data).
A substantial proportion of new graduates are over-educated; however the rate of over-education fell in the three years after course completion. Obtaining a job via a university-based search method was associated with a lower over-education probability, even after addressing omitted variable bias. Other search methods had a small or insignificant effect.
Our data do not allow us to control for the concurrent use of multiple job search methods, nor other measures of search intensity. These results suggest that over-education may be reduced through wider use of university careers services.
Graduate labour market; over-education; job search