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Overeducation and earnings: some further paneldata evidence

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  • Verhaest, Dieter

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Omey, Eddy

    (Universiteit Gent, Belgium)

Abstract

It is generally found that overeducated workers earn less than adequately educated workers with similar years of education. We investigate whether this finding may be attributed to worker heterogeneity on the basis of panel data for Flemish school leavers and job analysis measurement. The estimated overeducation penalty at labour market entry diminishes but remains statistically significant after the inclusion of individual fixed effects. Yet, this penalty is found to drop with years of work experience. Our outcomes suggest that this drop results at least partly from the selection of overeducated individuals into better paying industries and firms.

Suggested Citation

  • Verhaest, Dieter & Omey, Eddy, 2009. "Overeducation and earnings: some further paneldata evidence," Working Papers 2009/08, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    • Handle: RePEc:hub:wpecon:200908
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    References listed on IDEAS

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    Cited by:

    1. Keith Bender & John Heywood, 2011. "Educational mismatch and the careers of scientists," Education Economics, Taylor & Francis Journals, vol. 19(3), pages 253-274.
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    3. Bender, Keith A. & Roche, Kristen, 2013. "Educational mismatch and self-employment," Economics of Education Review, Elsevier, vol. 34(C), pages 85-95.

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