Is there a genuine under-utilization of skills amongst the over-qualified?

Abstract

Abstract\n Two theories of over-qualification are considered, namely mismatch, whereby workers do not find the most appropriate jobs for their skills, because of imperfect information or labour market rigidities, and `heterogeneous workers?, whereby individuals with the same qualifications have different actual skill levels, so that they can be over-qualified in terms of formal qualifications, while their skills are actually appropriate for the jobs that they do. The evidence suggests that both theories are relevant in certain situations.