Overeducation among the Second Generation in Western Europe : A cross-country comparison focusing on labour market characteristics

Abstract: This thesis investigates overeducation as an aspect of integration among the second generation in Western Europe. As the second generation grows and establishes themselves in the labour market, research about their labour market outcomes becomes increasingly important. Using nine rounds (2002-2018) of the European Social Survey (ESS), this thesis investigates the impact of being a second generation on the probability of being overeducated in Western Europe. An overeducation-measure is developed using the realised matches-approach and weighted linear probability models are performed on pooled and country-stratified samples. The thesis takes into account labour market supply-and demand-side characteristics to discuss possible mechanisms behind the results. The results show that across Western Europe, the second generation faces a higher probability of being overeducated compared to their native counterparts. The UK stands out, where the second generation is subject to an 8,53-percentage point higher probability of being overeducated than the natives. Parental origin and level of education are important supply-side factors, where the second generation with parents from non-EU countries and those with non-tertiary educated parents have higher probabilities of being overeducated. On the demand-side, employment and unemployment protection regulations are associated with overeducation, where stricter employment protection and higher net replacement rates in unemployment is associated with lower probabilities of overeducation among the second generation. This thesis highlights the importance of assessing the labour market supply- and demand-side characteristics in research about labour market outcomes for the second generation, and contributes to the research field with the comparative perspective.