The Effects of Overeducation on Productivity in Germany - the Firms' Viewpoint

By F. Büchel. Social Science Research Network, 2002

146 citations recorded by the source corpus.

Several firm-related aspects of employee productivity are analyzed using GSOEP data. The basic premise is that, as a consequence of frustration, overeducated employees are less productive than their correctly allocated colleagues. However, the results obtained in the present study contradict the few available empirical findings, all of which are based on data from the United States. When comparing employees working in jobs with similar levels of requirements (the sole approach which seems to be useful), overqualified employees are found to be healthier, more strongly work- and career-minded, more likely to participate in on-the-job training, and to have longer periods of tenure with the same firm than their correctly allocated colleagues. No significant differences could be determined with respect to job satisfaction. These findings are consistent with the established fact that overeducated workers receive wage premiums for their surplus schooling. The overall results make the hiring of overqualified applicants understandable, and could explain the employers' motivation to accept persistent overeducation in the labor force.

Subfields: Economics and Econometrics, General Health Professions

View Paper: https://www.semanticscholar.org/paper/d21e85ebc3d5efb4050518e4f266b86a26afc156

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Citations in the corpus

An Analysis of Skill Mismatch Using Direct Measures of Skills (2011, background): “But overeducated workers have been found to be more likely to participate in adult education/training when compared to matched workers who are in similar jobs (Büchel, 2002; Verhaest & Omey, 2006).”
Too smart for their own good? A study of perceived cognitive overqualification in the workforce (2008, background): “In addition, there is reason to believe that the incidence and consequences of overqualification may be influenced by cultural and/or job level differences (O’Brien 1986, Büchel 2002), an issue that was not addressed in this study.”
Objective over-education and worker well-being: A shadow price approach (2008, background): “Additionally, most other studies are in line with the economic view by finding no evidence on lower job satisfaction levels (Büchel, 2002; Groot & Maassen van den Brink, 2000; Khan & Morrow, 1991; King & Hautaluoma, 1987).”
The Impact of Overeducation and its Measurement (2006, unknown): “Büchel (2002) on the other hand found an insignificant positive effect.”
Competencies for young European higher education graduates: labor market mismatches and their payoffs (2008, background): “Increasingly, policy makers are focusing on the importance of competencies with a focus on: linkages between productivity (Buchel, 2002); the demand for competencies and globalization (De la Fuente & Ciccone, 2003); the need to take advantage of new technologies (Maria-christina, Santarelli, &…”
I’m too clever for this job: a bivariate probit analysis on overeducation and job satisfaction in Australia (2008, background): “In contrast to these findings, Buchel (2002), looking at the effect of overeducation on worker productivity within German firms, finds no significant difference in job satisfaction between overeducated and adequately educated employees.”
Overqualified Employees: Making the Best of a Potentially Bad Situation for Individuals and Organizations (2011, background): “For example, in a study of 12,000 individuals from Germany, Büchel (2002) found that overeducated individuals actually had longer tenure in their jobs.”
Stepping-Stones or Traps? (2004, background): “Büchel (2002), on the other hand, suggests an overall more positive situation for the over-qualified at constant occupational position.”