Any discussion of "overqualification" should begin with this chart: http://www.bls.gov/emp/ep_chart_001.htm http://www.bls.gov/emp/ep_chart_001.htm We often wo

Any discussion of "overqualification" should begin with this chart: http://www.bls.gov/emp/ep_chart_001.htm http://www.bls.gov/emp/ep_chart_001.htm We often worry that acquiring human capital is a double edged sword, but it's hard to find that in the data. That said, BLS has written that older workers face both lower rates and longer durations of unemployment: http://www.bls.gov/opub/ils/summary_10_04/older_workers.htm http://www.bls.gov/opub/ils/summary_10_04/older_workers.htm It seems contradictory at first glance: how do older workers have better and worse luck at the same time? One way to explain this is that as older workers gain in specialized skills, it makes "search costs" more difficult, it's harder to match them to the right job. PhD's in narrow disciplines face a similar situation: it's much harder to find that good fit right out of school, but in the long run, once you find a place, you're more likely to be well compensated, poached, or retained in employment by those who understand your skill set for the rest of your life. There could be other explanations. But from the raw data, if you had to bet on someone being employed, try to pick someone who is highly educated and older, no question.