Overeducation in the graduate labour market: A quantile regression approach

This paper exploits the homogeneity of data from a cohort of Northern Ireland graduates to explore the extent to which both the incidence and impacts of overeducation are specific to individuals of particular ability levels as proxied by their position within the graduate wage distribution. It was found that whilst the incidence of overeducation was heavily concentrated within low-ability segments of both the male and female graduate wage distributions, it was by no means exclusive to them. Using quantile regression techniques it was found that, relative to their well-matched counterparts, low-and mid-ability overeducated male graduates earned substantially less. However, the impacts of overeducation were found to be much more pervasive and constant throughout the entirety of the female ability (wage) distribution. The results provide only partial support for the hypothesis linking overeducation with lower levels of ability.