Job-Schooling mismatch and wages has received too much attention from developed countries researchers. The last two decades has provided a lot of empirical evidences on the incidence of over and under-education across developed countries in different periods, and returns on ORU (over-education, required education, and under-education). A recent wave of empirical works has focused on deeper questions: (i) Are ORU returns a firm wage effect? (ii) Do ORU returns remain significant after controlling for unobserved workers heterogeneity? (iii) Is over-education a deliberate investment decision of workers in their careers? The goal of this paper is to provide evidence for these questions by using personnel records of a large Brazilian manufacturing plant.
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Paper provided by Universidade Federal do Paraná, Department of Economics in its series Working Papers with number
0059.