An empirical analysis of overeducation among master's graduates in Spain

This study investigates the factors influencing overeducation among graduates in Spain, a phenomenon with significant implications such as reduced wages, lower productivity, and decreased job satisfaction. The analysis focuses on the impact of sociodemographic, educational, and employment characteristics using data from the EILU-2019 survey conducted by the National Institute of Statistics. Discrete choice models, enhanced by a multilevel approach based on fields of study, are applied to quantify the marginal effects of these factors on the likelihood of overeducation. The analysis emphasises master's graduates, a group that has been relatively underexplored in empirical research on overeducation. To address the lack of consensus on measurement methods, a novel approach is introduced that combines both subjective and objective criteria, providing a more comprehensive assessment of overeducation. Key findings highlight that field of study, company size, and having additional master's degrees are the most significant predictors of overeducation. These results shed light on the complexities of educational mismatches in Spain and offer valuable insights for both academic research and policymaking.