Over-education in the Labor Market - Coursework Example

OVER-EDUCATION IN THE LABOR MARKET Insert Insert Introduction Researchers have an argument that has lasted for long over who is deemed as over-educated. The breach arose due to the fact that job requirement to get the job and the actual requirements to do the job. Most job seekers are glued to understanding job requirements more than skill requirement and hence resulting in the gap. An individual is regarded over educated if he has more education than his current job requires him to have. It is not correlated to the amount of wages earned. Executive summary Research done by Peter Dolton and Mary (2001) has shown that there has been a steady increase in the number of people leaving the UK higher education. The qualification has not been much a factor into determining the amount of wages one is to get from working. In seeking for reasons to back the claims, most researchers have found out that the phenomenon is pegged on the fact that there is difference in ability between those who leave higher education above others (SILLES, Peter Dolton and Mary, 2001). In addition, the perception and reception of higher education has changed leading many people to join and pursue education. Career relation of most courses result in mismatches and as the search for jobs intensifies, higher education becomes the differing factor hence the presence of overqualified members in jobs they take. Analysis of UK graduate labor market The economist published an article that portrayed the over 40,000 degree courses offered across the UK universities as at 2002. Moreover, Chevalier (2000) noted that the education tuition fee has come down a great deal and many people are resorting to better themselves with the view of obtaining better jobs and take home packages. Eyebrows were raised when an author Hutt claimed that there is great waste that results from personnel that work in wrong jobs than those that are unemployed (CHEVALIER, Arnaud, 2000). In their article, Dolton and Vignoles (2002) came up with a revelation that estimated 30% of the UK graduates to be more educated than job requirement and availability in the UK markets. 22% have jobs that do not require them to have degrees while six years down the line they find themselves highly educated than their job demands (CHEVALIER, Arnaud, 2000). Why over-education happens Studies reveal a majority of reasons into why people are more educated than they are required in their job requirements. The phenomenon has been shaped by the labor market structures, public sector culture, nature of work (part-time and temporary), family commitment, health conditions, debt incurred during study time, early market choices, business-cycle effects and the cohort effects. Labor market structures favor the generation of work practices, which are pro rigidity and anti-competition oriented (G., Ordine P. and Rose, 2009). They curtail and limit the extent to which companies give rewards to their employees based on their education levels. The public sectors are known to have structures, which are less competitive and demanding for their workers. In addition, the part-time nature of jobs and temporary measures of a job informs members to further their study and upon graduating, are rendered over-educated for such jobs. The increased budgetary demands from commitment of family make persons creative and want to pursue further education ever strong (L., Ortiz, 2010). It is a result of the need to meet the ever-changing financial needs. However, men are on this point the more probable to acquire better jobs on an over-education basis because of the extra care women are bestowed with to Take care of the children. It makes them less flexible and the job search is limited. In addition, being married limits job search because couples would at all costs want to be together and will go for any job available within the locality. Ortiz (2010) argued that there are rare reasons including the health problems that make it difficult for any individual to take up better jobs. Disabled personnel for instance, may have engineering skills but settle for a clerical job because of their nature. On the contrary, such workers may be better placed in cases where government provides legislation in their favor. Most youthful citizens do not have enough money to take them to higher education and solely depend on loans to further their study (L., Ortiz, 2010). The burden urges the members to find better paying jobs in order to alleviate the loans hence landing in such a scenario. Study shows that most people maintain their first jobs for longer because they cease searching for other jobs and due to job insecurity. Other chances occur when people do not get the right source of information end up in the wrong jobs. Hot on the labor outlook is the business cycle and the cohort effects. Businesspersons are the creators and facilitators of job creation (P., Sloane, 2003). Unemployment is a factor that makes graduates goes for available jobs and not those they qualify. Impact of over-education on the job satisfaction Government policies in the UK encourage its citizens to pursue education (CHEVALIER, Arnaud, 2000). With higher education, people have higher expectations in the labor market. They get out of graduate schools in search for better jobs that have better take home packages. Notable however is the mismatch in the skill requirement of the labor market and the education levels of people in the UK (J., Wooldridge, 2003). When members fails to get better jobs and land less paying and or jobs that they are over-educated, they become frustrated. Dissatisfaction dampens moods of individuals and reduces their concentration and efforts in a given job. It affects a firm’s performance in general and profitability comes down. It has been known that dissatisfied individuals may quit their jobs any time. By quitting their jobs, the firms lose a lot because of lost time and cost used in hiring new people (S., Rubb, 2003). On the other hand, people who are over-educated have higher chances of missing essential skills required of them by their job postings. The companies are also affected because members of their staff do not deliver up to the job requirements. The firms are not competitively at an advantaged because of that hence more rigid in expansion. They may also incur extra costs of training their staff for specialty in skills. Contrary to the definition of over-education under study here, Wooldridge (2003) revealed that job satisfaction is majorly a factor of the job versus payment affair and not over-education and payment. Other factors that contribute to dissatisfaction in over-education in a work environment are the insensitivity of the bosses when it comes to duty description, resource allocation, promotions and payments (J., Wooldridge, 2003). Discuss to what extent over-education is a short-term phenomenon When a person is in a given job, their daily activities require them to master the skills relevant to their daily activities. As such, they only concentrate on sharpening them and soon they lose out the skills gained in school (ZAKARIYA, Zainizam, 2013). High expectations are brought to a normal with time and when workers realize that they cannot find other jobs and hence settle down to perform their duties. The satisfaction and acceptance of a job and mastery of the required skills becomes the new definition for the education requirement. In addition, some members due to higher education receive promotions and addition of duties help match up their education and skills requirement. At the level they are working upon promotion, satisfactions set in and over-education is no longer an issue (P., Sloane, 2003). Job shifting from one company to another happens when companies seek to recruit skilled labor and soon people find other jobs that match up their skill set. In the job market, workers are better placed to identify and get jobs they want and that are equivalent to their education more than the freshly graduated citizens with the same education levels are. They entire play made in the job market predisposes over-education in the field only lasting for a very short period. Implications of over-education on Universities and Government policy makers Over-education as it may sound is not wrong idea or endeavor. By releasing qualified staff into the market, a country is geared up for development because of the ready workforce. Institution upon receiving booming student levels may be tempted to increase tuition fee in a bid to develop more infrastructure to meet the ever-increasing demand (A., Cameron, 2009). Government will decide to shape policies to enhance and provide more jobs within the local market. It will involve wooing in more investors to utilize the workforce available. In addition, the government will have to make up for other ways of providing for citizens including providing money and platform to enable them become entrepreneurs and job creators (G., Ordine P. and Rose, 2009). Through coming up with monetary institutions that offer better packages and support for business oriented minds, a government will satisfy its citizens and avoid brain drain. Conclusion and recommendations Utilizing the best skill in the market should be the top most agenda for both University institutions and Government policy makers. A satisfied nation is a performing nation. A skilled well utilized is an education system achieving purpose. A government that equips it citizens with knowledge and proceeds to empower them with money and platform to develop further is worth articulating. Satisfaction is evidently a matter of better paychecks and the government should seek to improve the policies in favor of educated citizens. List of references A., Cameron. 2009. Microeconometrics Using stata, College Station. New York: Stata Press. CHEVALIER, Arnaud. 2000. Graduate Over-education in the UK. London School of Economics and political sciences. 2(1), pp.1-22. F., Sgobbi F and SUleiman. 2013. A methodological contribution to measuring skill mismatch. The Manchester School. 81(3), pp.420-437. G., Ordine P. and Rose. 2009. Overeducation and instructional Quality: a Theoretical Model and some Facts. Journals of Human Capital. 3(1), pp.73-105. J., Wooldridge. 2003. INtroductpry Econometrics: A modern Approach. Ohio: Thomson Learning. L., Ortiz. 2010. Not the right job, but a secure one: overeducation and temporary employment in France, Italy and Spain. Work, employment and society. 24(1), pp.47-64. P., Sloane. 2003. Much Ado about Nothing? What does the Overeducation literature really tell us? Grip and Mertens. 1(1), pp.1-2. PASTORE, Floro Ernesto Calorelo and Francesco. 2013. Determinanats and wage Effects of the Educational Mismatch. Educ journal review. 3(2), pp.1-33. S., Rubb. 2003. Overeducation in the Labour Market: A Comment and a Re-Analysis of Meta_Analysis. Economics of Education review. 22(6), pp.621-629. SILLES, Peter Dolton and Mary. 2001. Oveer-education in the Graduate Labour Market some eviddence from Alumni Data. London school of Economics and Politics SCiences. 4(2), pp.1-40. ZAKARIYA, Zainizam. 2013. The Effects of Overeducation on multiple job satisfaction towards enhacing individuals well-being in malaysia. Business and Management Quarterly Review. 4(3&4), pp.38-51. Read More