Overeducation, skill mismatches, and labor market outcomes for college graduates
Labor market mismatches (where employee qualifications do not match job requirements or are not used on the job) can result from overeducation or overskilling, which are two distinct phenomena. Policymakers should be especially concerned with overskilling which is likely to be harmful both to the welfare of employees (lower job satisfaction) and the interests of employers (lower productivity). Thus policy should ensure that education policies recognize that they must integrate with policies on skill formation outside the workplace, in case over-production of formal education interacts negatively with skill formation.