Educational mismatches and skills: New empirical tests of old hypotheses
AbstractIn this paper, we empirically explore how the often reported relationship between overeducation and wages can best be understood. Exploiting the newly published Programme for International Assessment of Adult Competencies PIAAC data OECD 2013, we are able to achieve a better estimation of the classical ORU-model Duncan and Hoffman, 1981, by controlling for heterogeneity of observable skills. Our findings suggest that 1 a considerable part of the effect of educational mismatches can be attributed to skills heterogeneity, and 2 that the extent to which skills explain educational mismatches varies by institutional contexts. These observations suggest that skills matter for explaining wage effects of education and educational mismatches, but the extent to which this is the case also depends on institutional contexts.
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Bibliographic InfoPaper provided by Maastricht : GSBE, Graduate School of Business and Economics in its series Research Memorandum with number 062.
Date of creation: 2013
Date of revision:
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
Analysis of Education; Education and Economic Development; Labor Demand; Human Capital; Skills; Occupational Choice; Labor Productivity;
Other versions of this item:
- Allen J.P. & Velden R.K.W. van der & Levels M. & Levels M., 2013. "Educational mismatches and skills: New empirical tests of old hypotheses," Research Memoranda 018, Maastricht : ROA, Research Centre for Education and the Labour Market.
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-EDU-2013-10-25 (Education)
- NEP-LAB-2013-10-25 (Labour Economics)
- NEP-LMA-2013-10-25 (Labor Markets - Supply, Demand, & Wages)
- NEP-URE-2013-10-25 (Urban & Real Estate Economics)
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