Overeducated for Your First Job? That Might Cost You Later

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

19 Moves That Will Help You Retire Early and in StyleFamily

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

A recent study says being overqualified for a first job after college can deflate your earnings now and into the future.

New college graduates might want to think twice before accepting a waitperson job. A new study suggests that your first job may have wage implications for years to come.

Based on 35 years of research, economists from Duke University and the University of North Carolina-Chapel Hill found that graduates who took a job they were overqualified for earned a smaller salary than their similarly educated peers, even up to a decade later. Time said:

In other words, starting off in a position that doesn’t match your education level can slow you down later in life.

That’s bad news for many students who find themselves taking any job they can get in a tough job market, especially when they have student loans to pay off.

It can be challenging to break free of underemployment. “After one year of being overeducated, 66 percent of these workers remained overeducated,” Vox said.

Overeducated workers have broad, long-lasting implications for the economy. Vox said:

These results also imply one way the economy will continue to underperform, even as the recession continues to recede in the rearview mirror. If all of those overeducated people persistently earn well below what they could have otherwise earned, it means less spending and less growth as well, in addition to the fact that all of those overeducated people are underutilized human capital.

After I graduated from college, I took a $7-an-hour job as a receptionist for about five months before I was hired as a reporter. Was I overeducated for that first job? Absolutely. And did I make embarrassingly low wages for years afterward? Yes. But I don’t know in my case if there was a link between being overeducated and underpaid for the next 10 years.

Regardless of my personal experience, this research certainly makes the case for being selective when choosing your first job after graduation.

What was your first job after college? Do you think it hurt your career? Share your thoughts below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 19 Cheap or Free Ways to Cut Your Winter Energy Bills

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,711 more deals!