Overeducation in bachelors’ degree graduates: family background matters

Purpose This article analyses the relationship between the overeducation gap in recent university graduates and parental educational attainment in Spain. Design/methodology/approach We explore a subsample from the 2019 Survey on the Labour Insertion of University Graduates. We first test how the influence of parental background on young recent graduates is largely explained by observable intervening channels. Then, group-specific overeducation risks are estimated separately for first-generation graduates (whose parents do not hold university degrees) and non-first-generation graduates (with at least one parent who is a university graduate). Finally, a Blinder–Oaxaca approach is used to decompose the overeducation gap into two segments: one (explained) based on observed factors, and another (unexplained) based on unobserved factors. Findings We find a relevant disadvantage among first-generation graduates due largely to the differences in the assignment across field of studies, type of university, access to graduate education, command of the English language and geographical mobility to study and work. Practical implications Our results indicate the scope for equalising action from institutions of higher education and labour market policies to palliate this gap oriented towards geographical mobility, preparation of public exams, internships and foreign language skills acquisition, together with affordable graduate studies. Originality/value This study decomposes the overeducation penalty that results from not having highly educated parents into two parts: one that results from the endowments of human, social and cultural capital and another that results from non-observable features. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2024-0921