Overeducation and Externalities in the Eu: The Combined Moderating Influence of Migration and Gender

Abstract

Using a bivariate probit model to control for selective access to employment, with this paper I aim to see whether, as expected by theory, migration lowers the problem of overeducation and gender division raises it, paying particular attention to the role of the proximity, interactions, and externalities of the various regions in the EU. The results show that workers with low probability of employment run a high risk of overeducation when they find a job. However, the results do not show evidence that male immigrants run a lower risk of overeducation than others. Highly educated people are more likely to migrate within a country not only to achieve better career prospects and greater employment opportunities but also to reduce the propensity for overeducation. The economic development and educational endowment of the region where a worker lives can explain the risk of overeducation.