Skill mismatch among UK graduates

Vecchi, Michela ORCID: https://orcid.org/0000-0002-0129-6769, Savic, Maja and Romiti, Marina (2021) Skill mismatch among UK graduates. Discussion Paper. Economic Statistics Centre of Excellence (ESCoE), London, UK. . [Monograph] (Accepted/In press)

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Abstract

We examine graduates’ skill mismatch in the UK focusing on their abilities and academic background, including a distinction between UK and foreign degrees. Approximately 30% of graduates in the UK are overqualified. Among UK-only graduates, the incidence of overqualification is considerably lower, independent of graduates’ nationality. Studying in a UK institution increases the chance of a good job match and has a positive effect on wages. Studying at more selective institutions and graduating with a first-class degree also promotes good job matches and higher earnings. Our results suggest that improving graduates’ skills, and a better match between foreign graduates and occupations, could be effective in reducing the skill mismatch.

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