For natives and Western immigrants, changing jobs seems to be correlated with an increasing probability of being overeducated while for immigrants we find that changing jobs is correlated with a lower probability of being overeducated.
Firm size, here measured as the number of employees in 1000's, decreases the risk of being overeducated while it increases the risk of being undereducated.
In the resulting equilibrium of realised matches, some workers will be overeducated for the job they have accepted, while others may be undereducated.
A native worker is 10% more likely to be overeducated per each career break experience, while this value is reduced to half in the case of migrants.
All groups of immigrants are more likely than natives to be overeducated, however, the relative risk is higher for immigrants from regions where Sweden traditionally has received refugee migrants and tied movers, for example Africa, South America and Asia.
Regarding the mismatch variables, crucially, there was no evidence to suggest that graduates from a migrant background were more likely to be overeducated, with the result holding when time since arrival and country of origin were controlled for.
The irony of the current situation is that India was once considered to be overeducated.
Migrants working in Europe and Asia are more likely than native workers to be overeducated, whereas migrants in Africa and Latin America are less likely to be overeducated compared to native workers.
2 Given job allocation frictions, workers with low bargaining power are more likely to be overeducated.
This selection process can, in turn, affect the observed probabilities of migrants to be overeducated.
