Overeducation and Wages in Europe: Evidence from Quantile Regression
AbstractThe overeducation literature has typically assumed that the effect of overeducation on wages is constant across the conditional wage distribution. In this paper we use quantile regression and data from 12 European countries to show that differences across segments of the distribution are indeed large. Moreover, we investigate to what extent overeducation is related to (the lack of) unobserved skills. By differentiating between segments of the distribution, we discriminate between groups of workers with different skills. We find that the detrimental effects of overeducation among the high-skilled are even larger than among the low-skilled. This finding lends support to the view that overeducation is an event that reduces the worker’s potential productivity, regardless of his skills.
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Bibliographic InfoPaper provided by FEDEA in its series Studies on the Spanish Economy with number 229.
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Other versions of this item:
- 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.
- C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-24 (All new papers)
- NEP-EEC-2007-03-24 (European Economics)
- NEP-LAB-2007-03-24 (Labour Economics)
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.:
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Low skills: why worry?
by chris dillow in Stumbling and Mumbling on 2013-10-09 11:54:28
- Poverty: structural or individual?
by chris dillow in Stumbling and Mumbling on 2014-08-01 13:07:18
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