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Overeducation and Instructional Quality: A Theoretical Model and Some Facts

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  • Patrizia Ordine
  • Giuseppe Rose

Abstract

This paper studies educational choices in a signaling setting in the presence of heterogeneous working ability imperfectly correlated with schooling costs. We show that even if individuals can use education to signal their ability, pooling equilibria may arise. These equilibria may be characterized by overeducation depending on firms' technologies. The role of instructional quality may be crucial in determining the emergence of this phenomenon. To find evidence of the main implications of the model, we use data of Italian graduates merged with two data sets from the Italian Ministry of Education and the Italian commission for academic research evaluation. Overeducation appears to be strongly determined by university quality and by other variables that characterize the individual's socioeconomic background. (c) 2009 by The University of Chicago. All rights reserved..

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Bibliographic Info

Article provided by University of Chicago Press in its journal Journal of Human Capital.

Volume (Year): 3 (2009)
Issue (Month): 1 ()
Pages: 73-105

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Handle: RePEc:ucp:jhucap:v:3:y:2009:i:1:p:73-105

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Web page: http://www.journals.uchicago.edu/JHC/

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Cited by:
  1. Caroleo, Floro Ernesto & Pastore, Francesco, 2013. "Overeducation at a Glance: Determinants and Wage Effects of the Educational Mismatch, Looking at the AlmaLaurea Data," IZA Discussion Papers 7788, Institute for the Study of Labor (IZA).
  2. Floro Ernesto Caroleo, 2012. "Il difficile passaggio verso il lavoro dei giovani che lasciano la scuola: Quali possibili politiche?," Discussion Papers 5_2012, CRISEI, University of Naples "Parthenope", Italy.
  3. Emanuela Ghignoni & Alina Verashchagina, 2012. "Educational qualifications mismatch in Europe Is it demand or supply driven?," Working Papers 154, University of Rome La Sapienza, Department of Public Economics.
  4. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers 145, University of Rome La Sapienza, Department of Public Economics.
  5. Emanuela Ghignoni, 2011. "Young workers‟ overeducation and cohort effects in “P.I.G.S.†countries versus the Netherlands: a pseudo-panel analysis," Working Papers 147, University of Rome La Sapienza, Department of Public Economics.
  6. Alain Alcouffe & Jean-Michel Plassard, 2013. "Abondance d'éducation peut -elle nuire ? Une histoire des théories de économiques de la sur-éducation," Working Papers halshs-00827251, HAL.
  7. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.
  8. Ordine, Patrizia & Rose, Giuseppe, 2011. "Inefficient self-selection into education and wage inequality," Economics of Education Review, Elsevier, vol. 30(4), pages 582-597, August.
  9. Giuseppe Lucio Gaeta, 2013. "Was it worth it? An empirical analysis of over-education among Ph.D. recipients in Italy," Working Papers 1302, c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.

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