Earlier research showed that obtaining a vocational instead of a general qualification has contrasting effects on employment and earnings over the life course. Relying on two international datasets (ESJS and PIAAC) and focussing on upper-secondary and post-secondary non-tertiary qualifications, we find similar contrasting effects in terms of educational and skill mismatches. While vocationally educated individuals are less likely to face mismatches at the start of their careers, this advantage gradually fades out over time. This pattern is not only found for overall mismatches, but also for mismatches in terms of several more detailed types of skills. We also find more favourable effects in terms of avoided mismatches for vocational programmes that combine a specific focus with workplace learning, while programmes that combine a less-specific focus with workplace learning seem to be less effective.

Based on monthly observations of their employment and overeducation status in the first seven years after leaving education, we use optimal matching sequence analysis to construct a typology of entry-patterns of Flemish secondary education graduates. We find that for a significant number of young people overeducation constitutes a persistent problem, affecting about half of the sample for nearly the full observation period.Investigating the risk factors shows factors such as having lower human capital endowments or facing job search constraints enhancing the risk of following disadvantageous trajectories. A lower reservation wage seems to make being persistently overeducated more likely. Yet, starting as 'overeducated' does not necessarily lead to being stuck in overeducation the rest of the career. About 7% of our sample succeeds in entering an adequate position even after being overeducated for a relatively long period. KeywordsUnderemployment, overqualification, optimal matching, youth labour market

We investigate the differential impact of alternative combinations of horizontal and vertical educational mismatches on wages. By using panel data for Belgian graduates, we consider the role of unobserved worker heterogeneity. Random measurement error in both types of mismatches is accounted for by adopting instrumental variable techniques. We consistently find that overeducated individuals without field of study mismatch earn less than adequately educated workers with a similar educational background. However, for individuals who are working outside their field of study, such a wage penalty is not always observed once accounting for unobserved heterogeneity and random measurement error. In some cases, field of study mismatch even seems to be financially beneficial to the worker. These findings contribute to our understanding regarding the extent to which educational mismatches are truly problematic. The results call for policies that focus primarily on combatting vertical mismatches.

Relying on data for Belgian graduates, we investigate the relationship between motives to participate in higher education (investment, educational consumption, student life consumption and social norms) and overeducation after graduation. We also examine whether these motives affect the relationship between overeducation and other outcomes like wages and job satisfaction. Key findings are that individuals motivated by educational consumption are less likely to be overeducated but face a stronger job satisfaction penalty to overeducation. Moreover, those motivated by student life consumption have a higher likelihood of overeducation.