How biased are the estimated wage impacts of overeducation? A propensity score matching approach
AbstractThis article uses Propensity Score Matching (PSM) techniques to assess the extent to which the costs of overeducation are likely to have been over-estimated as a result of unobserved skill heterogeneity in studies adopting the standard ordinary least squares (OLS) wage equation framework. It was found that the PSM estimates were very much in line with those generated by OLS, suggesting that the overeducation phenomenon is likely to be imposing real and significant wage and productivity costs on individuals and the economy more generally and therefore cannot be dismissed as merely arising as a result of an omitted variables problem.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 15 (2007)
Issue (Month): 2 ()
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- Sánchez-Sánchez, Nuria & McGuinness, Seamus, 2011. "Decomposing the Impacts of Overeducation and Overskilling on Earnings and Job Satisfaction: An Analysis Using REFLEX data," Papers WP393, Economic and Social Research Institute (ESRI).
- Lamo, Ana & Messina, Julián, 2010.
"Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators,"
Working Paper Series
1215, European Central Bank.
- Lamo, Ana & Messina, Julián, 2010. "Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators," Economics of Education Review, Elsevier, vol. 29(6), pages 1086-1099, December.
- Lamo, Ana & Messina, Julián, 2010. "Formal Education, Mismatch and Wages after Transition: Assessing the Impact of Unobserved Heterogeneity Using Matching Estimators," IZA Discussion Papers 4982, Institute for the Study of Labor (IZA).
- Kalfa, Eleni & Piracha, Matloob, 2013. "Immigrants' Educational Mismatch and the Penalty of Over-Education," IZA Discussion Papers 7721, Institute for the Study of Labor (IZA).
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