Recruitment Methods & Educational Provision Effects on Graduate Over-Education and Over-Skilling

This paper uses the Flexible Professional in the Knowledge Society (REFLEX) dataset to examine the potential role of higher education institutions in reducing the incidence of labour market mismatch amongst new graduates. In particular, we examine the extent to which the emphasis that degree programmes place on particular forms of learning impacts the probability that graduates will be exposed to labour market mismatch in their first employment. The research also considers the extent to which the likelihood of labour market mismatch varies according to the method by which graduates obtained their initial employment and, consequently, we also examine the potential role of higher education institutions within this context. The results of the study support the view that higher education institutions have an important role to play in combating labour market mismatch among graduates. With respect to course composition, our research supports the view that there is a strong inverse relationship between the aggregate number of vocational course components in a degree programme and the probability of mismatch in first job. The research suggests that increasing the practical aspects of degree programmes, irrespective of the field of study, will reduce the incidence of initial mismatch. In terms of routes into the labour market, higher education work placements with the potential to develop into permanent posts and the provision of higher education job placement assistance were found to have very substantial impacts in reducing the incidence of graduate mismatch. We also found that the use of private employment agencies significantly heighten the risk of subsequent mismatch. The research supports an expanded role for higher education institutions in reducing labour market mismatch by (a) increasing the resources allocated to work placements and job matching services and (b) providing students with additional training in more effective job search methods.