The dynamics of skill mismatches in the Dutch labour market

We use two waves of a Dutch longitudinal survey to analyze the dynamics of overeducation. It is found that the dynamics in overeducation are high. Only a small fraction of workers are long-term overeducated. Job to job mobility seems to act as a way out of overeducation, internal mobility within the firm does not. We also find evidence to suggest that overeducation compensates for lack of experience and tenure. Overeducated workers are more likely to search for other work. However, overeducation does not improve the chance of finding other work.