Overeducation among EU and Third-Country Immigrants in Europe: The role of Institutions, Policies and Culture

Faced with the demographic shift to a smaller and older labour force, the recruitment of migrants and their successful integration into the labour force is an essential challenge for all European countries. This article discusses the immigrant-native gap regarding the risk of overeducation for 28 European countries on the basis of the EU-LFS 2021 ad hoc module. Immigrants’ higher overeducation risks are interpreted as the result of processes of legal closure as well as statistical and taste-based discrimination. Higher overeducation rates of third country nationals (TCN) in contrast to EU migrants indicate that EU citizenship reduces discrimination and facilitates the recognition of educational certificates – they are skill-preserving devices for EU citizens but not for TCN. The large overeducation rates in particular in Southern Europe can be explained by segmented labour markets with higher unemployment and lower skill requirements increase overeducation risks, in particular for TCN. Moreover, it can be shown that EU citizenship, a higher educational level of the population, and more inclusive labour markets facilitate the occupational integration of immigrants.