Assessing the factors of the overeducation in the rural labor market

Abstract

The article analyzes the determinants of the overeducation in the Russian rural labor market compared to the urban labor market. As a database the article uses the 2018 Federal State Statistics Service Labor Force Survey microdata. The hypothesis of the research is that the main determinants in the rural labor market are employment in personal subsidiary plots, marital status, housekeeping and childcare. The authors perform analysis by each level of vocational education: higher and secondary vocational (separately for medium-level specialists and skilled workers). The determinants of overeducation are investigated using a binary regression model. The authors reveal that a higher level of overeducation is associated with employment in personal subsidiary plots for the purpose of selling products. Other significant determinants of overeducation in the rural labor market include gender; marital status; age; the number of household members; education field. Higher risks of overeducation are observed for persons with foreign citizenship; single men; as well as those living in larger households. The authors reveal significant differences in the determinants of overeducation among specialists and skilled workers. At the same time, no significant differences are found in the determinants of overeducation among high- and middle-level specialists. The results contribute to the investigation of the problems of imbalance in the labor market in Russia.