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There is a constant increase in the graduates supply in the labour market in Albania. It seems that the expansion is going on a basis that risks distorting the distribution of students not in line with labor market needs. These expansions have been predicated on the assumption that more education is good for individuals and for society as a whole, not only in terms of economic outcomes like wages or employment, but also for a wide range of social outcomes like improved health and higher well-being. However, along with expansion of the system has come a range of new questions that have emerged as consequence of being many more tertiary graduates. For example, has the increase in tertiary graduates resulted in an oversupply of workers with tertiary qualifications, and thus a decline in the ‘value of a degree?’ If overeducation is a temporary disequilibrium or a permanent feature of economy; if the subject of degree affects the likelihood of being overeducated etc. are raised. This paper represents a research, aiming a total covering of the labour market measuring the overeducation rate for the graduates in Albania and drawing some take aways. The main contribution of the paper consists in providing estimations of graduate overeducation rate in national level. Some guidelines for possible recommendations for policies makers, relevant government agencies, higher education institutions, parents and other stakeholders involved in higher education sector in Albania, are also provided.

Overeducation and Mismatches at the Labour Market - Albania Case