The scourge of “overqualification”

OECD has been at it again

David Kernohan is Deputy Editor of Wonkhe

So – are workers in England more likely to be “overqualified” for the work they are doing than their global peers?

Even in posing the question you know this is going to be an OECD report: in this case the Survey of Adult Skills for 2023. As the name and background suggests, this is a multi-national survey instrument, with a sample size of around 5,000 per country or “sub-national entity” (like England) and response rates hovering around 40 per cent (the target was 70 per cent). This gets England a “medium caution” rating in the non-response bias analysis. There’s literally a whole additional publication detailing the methodological problems faced.

This is before we get to the thorny question of how we identify skills mismatches – it turns out you are “overqualified” for a role based on responses to this question:

If applying today, what would be the usual qualification, if any, that someone would need to get this type of job?

To be clear, this isn’t a matter of looking at qualification mappings, or analysing job advertisements. This is just asking the person you are interviewing what qualification is “usual” to get this “type of job”. And if the qualification someone holds is deemed higher than the qualification named in the answer to this question – they are “overqualified”.

Imagine, say, a hospital lab worker who has taken a job-related part-time masters qualification while working over a number of years. As they started their job via an apprenticeship straight from school, they are now overqualified.

England, Japan, and Israel have the largest proportion of “overqualified” workers. England and Israel are also among those with more workers deemed “overskilled” – an even more nebulous concept.

We get a list of characteristics associated with qualification mismatches:

  • Age (younger workers may take time to sort their way into the right roles, older workers will be likely to have spent less time in education)
  • Gender and partnership status (women overwhelmingly tend to take on family care responsibilities, limiting the types of work they are able to participate in at certain points in their lives)
  • Immigration status (foreign-born and foreign-educated workers are more likely to see their qualification unrecognised)
  • Attainment (clearly if you have spent more time in education, you are more likely to be overqualified)
  • Firm size (smaller firms are more likely to give workers responsibilities for which they are overmatched in terms of qualifications)
  • Contract type (you are more likely to be overqualified if you are on a temporary contract)
  • Occupation (if you are in “elementary” work, you are clearly more likely to be overqualified – if you have pretty much any qualifications)

Where things get really odd is if you look at overqualification rates for people in these groups – in England workers with the above characteristics are less likely to be overqualified than pretty much anywhere else (the charts at 4.17 in the report are fascinating). Firm size is the notable exception. All of which prompts the question as to who it is in England that is underskilled – either the issue is in what we might call mainstream employment or there is a survey problem.

The OECD country-specific report for England doesn’t offer much help – it says that even though there is more “overqualification” in England, there is less of a wage gap based on this phenomenon than in most other nations, and no significant impact on life satisfaction.

In summary, there is a small detrimental wage impact from “overqualification” but no other issues worthy of note. And England’s rash of “overqualification” may simply relate to a better qualified workforce or (as little as I want to get behind the current fashion to disparage human resources departments) poor quality recruitment.

4 responses to “The scourge of “overqualification”

  1. This calls to mind a lady I met many years ago who used to be a cleaner at a University I worked in. We were chatting one morning and I discovered she used to be a mining engineer in Russia. She was in the UK, as a cleaner, earning more money that she would have back home. It felt like such a waste of her skill set, but she had made an intentional economic (and maybe political) choice.

  2. Is the question of “what qualification would someone need to get this job?” asked separately in each country?

    Having worked in the UK & France (which shows below-average “overqualification” in this study), I wonder what impact that makes. In my own experience, French employers are much more likely than British ones to require specific qualifications.

    If, for example, interviewees in France say that you need a masters in management to become a project manager, and in the UK the interviewees say you don’t need a specific qualification for that role… the same project manager with an MSc Management could be “overqualified” in the UK but not in France.

  3. The question itself is plagued by issues surely? There is a difference between the qualifications that the job role may actually require and the qualification level a candidate might need to have to be competitive enough to be offered the position. On top there is then the issue of how many job adverts have set qualification requirements higher than actually needed to manage demand.

  4. I spotted this this line in the report too: “41% of workers are mismatched in terms of field of study, because their highest qualification is not in the field that is most relevant to their job”. From the way this is worded I’m assuming it’s a criticism. But over 80% of UK employers don’t recruit by subject (ISE data). You don’t need a law degree to be a lawyer here. We can argue whether this is a good or bad thing – lots of flexibility for students and employers but a challenge when matching education pathways to the labour market – but it’s a consistent feature of the UK labour market. Employers are also less likely to stiplate a postgraduate qualification in the UK.

    The other thing I don’t understand about this report is the previous OECD stat quoted by UUK a couple of years ago that said: “14% of the UK workforce are overqualified but 27.7% are underqualified”. If only 7% are now underqualified that’s a pretty major shift that I would have thought the OECD should justify. This is important because data like this is spread throughout the media with little critique.

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