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Meeting at School. Assortative Matching in Partnerships and Over-Education

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  • A. Tampieri

Abstract

This paper argues that assortative matching may explain over-education. Education determines individuals' income and, due to the presence of assortative matching, the quality of the partner, who can be a colleague or a spouse. Thus an individual acquires some education to improve the expected partner's quality. But since everybody does that, the partner's quality does not increase and over-education emerges. Tax progression to correct over-education has ambiguous effects on the educational incentives according to the individuals' ability. We test the model using the British Household Panel Survey. The empirical results support our theoretical findings.

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File URL: http://www2.dse.unibo.it/wp/WP726.pdf
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Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp726.

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Date of creation: Jan 2011
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Handle: RePEc:bol:bodewp:wp726

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  1. Ana I. Moro Egido & Santiago Budría, 2007. "Overeducation and Wages in Europe: Evidence from Quantile Regression," Economic Working Papers at Centro de Estudios Andaluces E2007/04, Centro de Estudios Andaluces.
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