Overeducation Among Saudi Graduates in the Labour Market: Incidence and Determinants Across Two Self-Assessment Measures

Education expansion has prompted an extensive body of literature on the issue of overeducation, particularly in developed countries. However, as is the case for many developing countries, little, if any, empirical evidence from Saudi Arabia has emerged on this topic. Using cross-sectional survey data, this study examined the prevalence and possible determinants of overeducation among Saudi graduates in the labour market on the basis of two different self-assessment measures. Results indicated that nearly 50% of Saudi graduates in the study were considered overeducated based on each measure, while about 41% were consistently considered overeducated based on both measures. Using logistic regression models, several individual and job characteristics were deemed as major determinants of the probability of being overeducated across both measures. Furthermore, the two measures largely overlapped and yielded somewhat similar conclusions in terms of both the estimates and determinants of overeducation among graduates. The plausible implications of the results for education and labour market policies are discussed.