Overeducation in Higher Education

Overeducation has been observed since the 1970s and challenged the faith people have long placed in education. This study examines the mismatch between the skills produced by higher education and demanded by the labor market, focusing on the surplus (overeducation, underemployment, or underutilization of skills) of professionals. Early childhoodteacher education in Ohio, a perceived oversupplied professional labor market, is used an example of overeducated profession in the U.S. A contingent valuation survey and several variants were developed to answer the research questions about overeducation in the Early Childhood education in Ohio. The study investigates the incidence of overeducation, the duration of overeducation, factors of overeducation, and people’s willingness to accept (WTA) incentives to transfer to other professions in demand. The study finds that incidence of overeducation was low before the teacher licensure policy change in 2003, and the duration of overeducation increased for recent graduates. The results showed that the timing of graduation is critical for graduates to find a proper employment upon graduation. This reflects the importance of the policy change in 2003. The earlier graduates are less likely to encounter overeducation than recent graduates. The study also shows that, although factors unclear, about 20% to 60% program participants are willing to accept incentives of educational subsidies to transfer to other professional programs. It shows that overeducation can be converted to solution of labor shortage in other professions.