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The authors investigate whether, in Spain, overeducation is a source of inefficiency in the allocation of resources, or a substitute for specific training. They find that the overeducated are less likely to participate in specific training for the job held. They also find that workers who do take part in such job-specific training elicit higher returns from their formal education. Specific training makes up for the negative pay differential of overeducation in relation to the required level of education for the job held. To a lesser extent, the same happens for undereducation.