Over‐education in Cyprus: Micro and macro determinants, persistence and state dependence. A dynamic panel analysis

We use longitudinal panel data from the EU-SILC for period 2005–2011 to examine micro and macro determinants, persistence dynamics of over-education. The key contribution in terms determinants over-education is inclusion macro-level explanatory variables control both aggregate supply demand labor market conditions. Their effects are found be strongly significant have expected sign. article also disentangles effect past experience on likelihood current Results demonstrate that not only a long-run phenomenon many workers but largely due circumstances individual with this state dependence present at all career stages.