Overeducation and wages downgrading : conditions of a spatial differentiation

Most previous studies modeling overeducation has failed to take into account the impact of the local labor markets characteristics. We investigate overeducation in such a context, focusing on employment density. In this paper we restrict our analysis on a statistical approach of the overeducation phenomenon both for skill levels and wages of the early career of French people. Selective access to employment is corrected using a probit analysis with sample selection. Estimations highlight the importance of the characteristics of the labor market to avoid overeducation, more particularly : employment density, commuting time, increase in population or unemployment rate. We also emphasize a substitution (complementary) effect between unemployment and overeducation from a skill (salary) point of view.