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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

    ()
    (European Central Bank)

  • Messina, Julián

    ()
    (World Bank)

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.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4982.

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Length: 37 pages
Date of creation: May 2010
Date of revision:
Publication status: published in: Economics of Education Review, 2010, 29 (6), 1089-1099
Handle: RePEc:iza:izadps:dp4982

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Keywords: matching estimators; education mismatch; wage determination;

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References

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Cited by:
  1. 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, Elsevier, vol. 32(C), pages 78-91.
  2. Sattinger, Michael & Hartog, Joop, 2013. "Nash bargaining and the wage consequences of educational mismatches," Labour Economics, Elsevier, Elsevier, vol. 23(C), pages 50-56.
  3. Patrizia Ordine & Giuseppe Rose, 2014. "Too Many Graduates? A Theory Of (Efficient) Educational Mismatch And Evidence From A Quasi-Natural Experiment," Working Papers 201409, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  4. Cory Koedel & Rachana Bhatt & Douglas Lehmann, 2012. "Is Curriculum Quality Uniform? Evidence from Florida," Working Papers, Department of Economics, University of Missouri 1206, Department of Economics, University of Missouri.
  5. Stephan Kampelmann & François Rycx, 2012. "The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data," DULBEA Working Papers, ULB -- Universite Libre de Bruxelles 12-05, ULB -- Universite Libre de Bruxelles.
  6. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers, AlmaLaurea Inter-University Consortium 19, AlmaLaurea Inter-University Consortium.

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