A study published in the European Journal of Population in November 2024 investigates the phenomenon of overqualification among second-generation immigrants in Sweden’s labor market. It compares the likelihood of these individuals working in jobs that do not match their educational qualifications with both first-generation immigrants and the majority native Swedish population.
The findings reveal that second-generation immigrants (G2) are less likely to be overqualified than their parents’ generation, indicating a form of intergenerational progress. However, they still face a moderately higher risk of overqualification compared to native Swedes. This disparity is particularly evident among those with tertiary education and those with non-Western backgrounds.
Key Findings on G2 Overqualification Compared to Native Swedes:
• Overall, while G2 immigrants experience lower rates of overqualification than first-generation immigrants (G1), they still face up to 19% higher likelihood of overqualification than the majority population.
• This difference is especially pronounced among tertiary-educated individuals:
• G2 men with higher education are 4.3 percentage points (pp) more likely to be overqualified.
• G2 women with the same level of education are 6.6 pp more likely.
• These differences correspond to 9% and 19% higher probabilities, respectively, compared to their majority population counterparts.
• The probability of overqualification varies significantly across different ethnic and racial ancestry groups:
• Individuals of Iranian, Middle Eastern and North African (MENA), and other non-Western origins show the highest disparities—up to 39% higher than the majority population.
• Groups with Eastern European and Other Western backgrounds also report higher shares of overqualification than the native Swedish population.
• The study also examines the 2.5 generation (G2.5)—individuals with one Swedish-born parent and one foreign-born parent. This group shows a similar or slightly lower likelihood of overqualification compared to G2 individuals, suggesting the influence of social capital and job search networks. Exceptions were noted, for example, among women with Finnish or Turkish backgrounds.
In short, although G2 individuals appear to be better integrated into the labor market than their parents, they still face notable structural disadvantages, especially those with higher education and non-Western roots. These findings suggest that despite comparable or even higher educational achievement, G2 immigrants may still struggle with hidden and structural barriers that prevent them from accessing employment that matches their qualifications.
Second-Generation Iranians in Sweden and Overqualification
The study includes detailed data on Iranian immigrants, particularly the second generation (G2) in Sweden.
• G2 individuals of Iranian origin face a notably higher risk of overqualification than the majority Swedish population.
• This disparity is most evident among tertiary-educated individuals, who face up to 39% higher probability of working in jobs below their qualification level.
• In 2016, using the mode-based statistical method, second-generation Iranian women born in Sweden had a 1.8 pp higher share of overqualified employment (28.5%) compared to native Swedish women (26.7%).
• In terms of magnitude, G2 Iranian men were nearly twice as likely, and G2 Iranian women nearly three times as likely, to be overqualified compared to their native counterparts.
This significant gap suggests that highly educated G2 Iranian women are more likely than men to face labor market overqualification. By contrast, G2.5 Iranian men with tertiary education had an 8.5 pp lower probability of being overqualified compared to G2 Iranian men, pointing to the potential benefits of having one Swedish-born parent in terms of access to labor market resources and social capital.
The study suggests that non-Western origins, including Iranian, may contribute to this disparity. Factors such as limited economic resources within co-ethnic networks and ethnic discrimination in hiring practices are listed as possible explanations.
Additionally, the study emphasizes a strong gender dimension to the overqualification phenomenon among second-generation immigrants in Sweden. Women—especially those with tertiary education—face a higher risk of overqualification than both native Swedish women and G2 men. This pattern varies across ancestry groups and levels of education, highlighting the presence of complex structural and social factors that influence labor market outcomes.
