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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. JEL Classification: J0

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 1215.

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Date of creation: Jun 2010
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Handle: RePEc:ecb:ecbwps:20101215

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Keywords: Education mismatch; Matching Estimators; wage determination;

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Citations

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Cited by:
  1. Bhatt, Rachana & Koedel, Cory & Lehmann, Douglas, 2013. "Is curriculum quality uniform? Evidence from Florida," Economics of Education Review, Elsevier, vol. 34(C), pages 107-121.
  2. Sattinger, Michael & Hartog, Joop, 2013. "Nash bargaining and the wage consequences of educational mismatches," Labour Economics, Elsevier, vol. 23(C), pages 50-56.
  3. 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.
  4. Stephan Kampelmann & François Rycx, 2012. "The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data," Working Papers CEB 12-038, ULB -- Universite Libre de Bruxelles.
  5. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.

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