Is your taxi driver actually an engineer? : Mismatch in the Swedish Labour Market: Overeducation? Does it differ across different birth regions?

Sammanfattning: The objective of this essay is to explain if there exist a mismatch on the Swedish labour market, with a main emphasis on overeducation. We frame our empirical work according to mismatch theories the human capital theory, technological change theory and the education-occupation mismatch theory. Using panel data from the European Social Survey covering the period 2002 and 2016 were we able to define overeducation at different levels to observe which is the most suitable for the topic of this essay. Our main result will be focusing on the 20 percent level, which means: “I and 20% other workers acquire a higher education than the other 80%”. Our result indicated that immigrants experienced a higher likelihood of being overeducated in comparison to natives. When we looked at the different birth regions did we found that individuals from the Central/South American countries were the ones who experienced the highest likelihood of being overeducated. Our result indicates that the further away your home country is from Sweden the higher is the probability of being overeducated, which goes hand in hand with the theories presented.