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Overeducation and the Graduate Labour Market: A Quantile Regression Approach

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Author Info
Seamus McGuinness
Jessica Doyle (Economic Research Institute of Northern Ireland)

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Abstract

This paper uses quantile regression techniques to analyse the characteristics of the wage distribution of a cohort of Northern Ireland graduates. It was found that the penalty associated with graduate overeducation experienced by female graduates was much larger than that for male graduates. Whilst the impacts of male overeducation tended to be more heavily concentrated in the segments of the wage distribution usually associated with lower ability, the effect was found to be much more pervasive and constant throughout the entirety of the female wage distribution. The results provide only partial support for the hypothesis linking the incidence of overeducation with lower levels of ability. It is shown that the unequal distributional impacts of overeducation contribute, to some extent, to a widening of the gender pay gap, however, educational background and regional labour market characteristics were found to be much more important in this respect.

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File URL: http://www.erini.ac.uk/act_download.cfm/publication_key/2055/
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Publisher Info
Paper provided by Economic Research Institute of Northern Ireland in its series Working Papers ERINI with number 1.

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Length: 23 pages
Date of creation: Oct 2004
Date of revision:
Handle: RePEc:eri:wperin:1

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Related research
Keywords: LABOUR MARKET; EDUCATION; OVEREDUCATION;

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Sloane, P J & Battu, H & Seaman, P T, 1996. "Overeducation and the Formal Education/Experience and Training Trade-Off," Applied Economics Letters, Taylor and Francis Journals, vol. 3(8), pages 511-15, August. [Downloadable!] (restricted)
  2. Daly, Mary C. & Buchel, Felix & Duncan, Greg J., 2000. "Premiums and penalties for surplus and deficit education: Evidence from the United States and Germany," Economics of Education Review, Elsevier, vol. 19(2), pages 169-178, April. [Downloadable!] (restricted)
  3. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April. [Downloadable!] (restricted)
  4. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February. [Downloadable!] (restricted)
  5. Sloane, P J & Battu, H & Seaman, P T, 1999. "Overeducation, Undereducation and the British Labour Market," Applied Economics, Taylor and Francis Journals, vol. 31(11), pages 1437-53, November. [Downloadable!] (restricted)
  6. Groot, Wim, 1996. "The Incidence of, and Returns to Overeducation in the U.K," Applied Economics, Taylor and Francis Journals, vol. 28(10), pages 1345-50, October. [Downloadable!] (restricted)
  7. Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, vol. 21(3), pages 221-229, June. [Downloadable!] (restricted)
  8. Dr. Peter Kenning & Hilke Plassmann, 2004. "NeuroEconomics," Experimental 0412005, EconWPA. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Peter Galasi, 2008. "The effect of educational mismatch on wages for 25 countries," Budapest Working Papers on the Labour Market 0808, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
  2. Elish Kelly & Philip O'Connell & Emer Smyth, 2008. "The Economic Returns to Field of Study and Competencies Among Higher Education Graduates in Ireland," Papers WP242, Economic and Social Research Institute (ESRI). [Downloadable!]
  3. Seamus McGuinness & Jessica Bennett, 2005. "Intra and Inter-Generational Changes in the Returns to Schooling 1991-2002," Working Papers ERINI 6, Economic Research Institute of Northern Ireland. [Downloadable!]
  4. Ian Walker & Yu Zhu, 2007. "The College Wage Premium, Overeducation, and the Expansion of Higher Education in the UK by and," Working Papers 200720, Geary Institute, University College Dublin. [Downloadable!]
  5. Ian Walker & Yu Zhu, 2005. "The College Wage Premium, Overeducation, and the Expansion of Higher Education in the UK," IZA Discussion Papers 1627, Institute for the Study of Labor (IZA). [Downloadable!]
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