An analysis of perceived overqualification in the Swiss labor market

This paper takes Switzerland as a case study and examines the determinants of (perceived) overqualification in a macroeconomic setting where there is indeed excess demand for qualified labor. Our analyses show that overqualification in the Swiss labor market cannot be explained by possible rigidities and discrimination. Hence, the labor market in Switzerland must in general be considered as efficient. Hence, unobserved heterogeneity should indeed account for the phenomenon of overqualification / overeducation. Nonetheless, women’s family commitments are found to restrict the full utilization of their investment in human capital. Thus, there exists some room for policy measures to improve the job – education match of women (especially of those who have children between 0 – 6 years of age) by increasing the availability of external child care facilities and / or making child care at home more affordable. This study has been realized using the data collected in the "Living in Switzerland Survey " (1999−2003) by the Swis