Overeducation Among Academic Degree Holders in Israel

Following the notable rise in education levels in the past decades, the issue of overeducation has become more and more relevant in public discourse, especially surrounding the issue of study majors and the implications for future graduates. This study, however, focuses on three other explanations for the phenomenon: (A) Hebrew proficiency – the lack of Hebrew language proficiency has a large influence on overeducation among immigrants. (B) Age and tenure – the incidence of overeducation is related to age, and in particular for workers with low job tenure. The problem is particularly acute for workers who change jobs at a later age since many of them experience a period of temporary unemployment. (C) Spatial flexibility – Worker mobility, as measured by the length of time a worker is willing to commute to work and the availability of a private car may affect the matching of workers’ educational characteristics and employers’ preferences.