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Measuring Over-education

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Author Info
Arnaud Chevalier

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Abstract

Previous work on over-education has assumed homogeneity of workers and jobs. Relaxing these assumptions, we find that over-educated workers have lower education credentials than matched graduates. Among the over-educated graduates we distinguish between the apparently over-educated workers, who have similar unobserved skills as matched graduates, and the genuinely over-educated workers, who have a much lower skill endowment. Over-education is associated with a pay penalty of 5%-11% for apparently over-educated workers compared with matched graduates and of 22%-26% for the genuinely over-educated. Over-education originates from the lack of skills of graduates. This should be taken into consideration in the current debate on the future of higher education in the UK. Copyright The London School of Economics and Political Science 2003.

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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 70 (2003)
Issue (Month): 279 (08)
Pages: 509-531
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Handle: RePEc:bla:econom:v:70:y:2003:i:279:p:509-531

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  1. Budria, Santiago, 2005. "Can over-education account for the positive association between education and within-groups wage inequality? A note," MPRA Paper 92, University Library of Munich, Germany. [Downloadable!]
  2. D. Verhaest & E. Omey, 2009. "The Determinants of Overeducation: Different Measures, Different Outcomes?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/592, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  3. Parvinder Kler, 2005. "Graduate overeducation in Australia: A comparison of the mean and objective methods," Education Economics, Taylor and Francis Journals, vol. 13(1), pages 47-72, March. [Downloadable!] (restricted)
  4. Dieter Verhaest & Eddy Omey, 2006. "Discriminating between alternative measures of over-education," Applied Economics, Taylor and Francis Journals, vol. 38(18), pages 2113-2120, October. [Downloadable!] (restricted)
  5. A. Nikolaou & I. Theodossiou, 2006. "Returns to qualifications and occupation for males and females: evidence from the British Workplace Employee Relations Survey (WERS) 1998," Applied Economics Letters, Taylor and Francis Journals, vol. 13(10), pages 665-673, August. [Downloadable!] (restricted)
  6. repec:ese:iserwp: is not listed on IDEAS
  7. Massimiliano Bratti & Robin Naylor & Jeremy Smith, 2005. "Variations in the Wage Returns to a First Degree: Evidence from the British Cohort Study 1970," IZA Discussion Papers 1631, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. D. Verhaest & E. Omey, 2004. "What determines measured overeducation?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/216, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  9. Francis Green & Yu Zhu, 2008. "Overqualification, Job Dissatisfaction, and Increasing Dispersion in the Returns to Graduate Education," Studies in Economics 0803, Department of Economics, University of Kent. [Downloadable!]
  10. Joanne Lindley & Steven McIntosh, 2008. "A Panel Data Analysis of the Incidence and Impact of Over-education," Working Papers 2008009, The University of Sheffield, Department of Economics, revised Jul 2008. [Downloadable!]
  11. Jhon James Mora, 2008. "Sobre-educación en el mercado laboral colombiano," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 10(19), pages 293-309, July-Dece. [Downloadable!]
  12. Nielsen, Chantal Pohl, 2007. "Immigrant overeducation : evidence from Denmark," Policy Research Working Paper Series 4234, The World Bank. [Downloadable!]
  13. Ingrid Linsley, 2005. "Overeducation in the Australian Labour Market: Its Incidence and Effects," Department of Economics - Working Papers Series 939, The University of Melbourne. [Downloadable!]
  14. Shirley Dex & Jo Lindley, 2007. "Labour market job matching for UK minority ethnic groups," Working Papers 2007003, The University of Sheffield, Department of Economics, revised Jan 2007. [Downloadable!]
  15. Seamus McGuinness, 2005. "How Biased are the Estimated Wage Impacts of Overeducation? A Propensity Score Matching Approach," Working Papers ERINI 7, Economic Research Institute of Northern Ireland. [Downloadable!]
    Other versions:
  16. Keith A. Bender & John S. Heywood, 2006. "Educational Mismatch Among Ph.D.s: Determinants and Consequences," NBER Working Papers 12693, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  17. Aniela Wirz, 2004. "To my Wife, with Love! Does Within-household Specialisation Explain Husbands' Better Job-education-match?," KOF Working papers 04-93, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  18. Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Department of Economics - Working Papers Series 940, The University of Melbourne. [Downloadable!]
  19. Joanne Lindley, 2008. "The Over-Education of UK Immigrants and Minority Ethnic Groups: Evidence from the Labour Force Survey," Working Papers 2007013, The University of Sheffield, Department of Economics. [Downloadable!]
    Other versions:
  20. Aniela Wirz & Erdal Atukeren, 2004. "Overeducation in the Swiss Labour Market: Does Anything Go Wrong?," KOF Working papers 04-85, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  21. Grazier, Suzanne & O'Leary, Nigel C. & Sloane, Peter J., 2008. "Graduate Employment in the UK: An Application of the Gottschalk-Hansen Model," IZA Discussion Papers 3618, Institute for the Study of Labor (IZA). [Downloadable!]
  22. Fabel, Oliver & Pascalau, Razvan, 2007. "Recruitment of Seemingly Overeducated Personnel: Insider-Outsider Effects on Fair Employee Selection Practices," MPRA Paper 7218, University Library of Munich, Germany. [Downloadable!]
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