Higher education and youth transition from school to labour market: The Spanish case

Using a specific data set drawn from the Spanish Module Education to Labour Market Transitions (2000), this paper analyses the labour market entrance of Spanish school leavers and the match between education and work at the early stages of working life. Moreover, special attention is paid to graduates, because Spain experienced a strong growth in the demand for higher education during the last decades of 20th century. The empirical evidence shows that, besides other personal and family individual's characteristics, human capital exerts a strong influence on the finding of an employment. With regard to the match between education and work, the results indicate that over-education is a common phenomenon in the Spanish youth labour market. However, unlike what one could expect, being a graduate seems to be associated to a lower likelihood of over-education in the first employment.