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Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators

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  • Lamo, Ana
  • Messina, Julián

Abstract

This paper studies the incidence and consequences of the mismatch between formal education and the educational requirements of jobs in Estonia during the years 1997-2003. We find large wage penalties associated with the phenomenon of educational mismatch. Moreover, the incidence and wage penalty of mismatches increase with age. This suggests that structural educational mismatches can occur after fast transition periods. Our results are robust for various methodologies, and more importantly regarding departures from the exogeneity assumptions inherent in the matching estimators used in our analysis.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 29 (2010)
Issue (Month): 6 (December)
Pages: 1086-1099

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Handle: RePEc:eee:ecoedu:v:29:y:2010:i:6:p:1086-1099

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: Education mismatch Wage determination Matching estimators;

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Citations

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Cited by:
  1. Cory Koedel & Rachana Bhatt & Douglas Lehmann, 2012. "Is Curriculum Quality Uniform? Evidence from Florida," Working Papers 1206, Department of Economics, University of Missouri.
  2. Joop Hartog & Michael Sattinger, 2012. "Nash Bargaining and the Wage Consequences of Educational Mismatches," Tinbergen Institute Discussion Papers 12-129/V, Tinbergen Institute.
  3. Kampelmann, Stephan & Rycx, Francois, 2012. "The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data," IZA Discussion Papers 7093, Institute for the Study of Labor (IZA).
  4. Kiersztyn, Anna, 2013. "Stuck in a mismatch? The persistence of overeducation during twenty years of the post-communist transition in Poland," Economics of Education Review, Elsevier, vol. 32(C), pages 78-91.
  5. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.

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