Overeducation, Wages and Promotions within the Firm
AbstractWe analyse data from personnel records of a large firm producing energy and telecommunication and test for the effect of deviations between required and attained education of workers. Required education is measured as hiring standards set by the firm. We find the usual effects of over- and undereducation in a wage regression, thus rejecting the argument that such effects are exclusively due to firm fixed effects. Distinguishing, within the firm, between a sheltered internal labour market and an exposed external labour market, we find that at the internal labour market over- and undereducation significantly affect career development, in particular at younger ages, but that such effects are mostly absent at the firm’s external labour market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 883.
Length: 23 pages
Date of creation: Oct 2003
Date of revision:
Publication status: published in: Labour Economics, 2004, 11 (6), 701-714
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Groeneveld, Sandra & Hartog, Joop, 2004. "Overeducation, wages and promotions within the firm," Labour Economics, Elsevier, vol. 11(6), pages 701-714, December.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- M51 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Firm Employment Decisions; Promotions
This paper has been announced in the following NEP Reports:
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.:
- 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.
- Hartog, Joop, 1988. "An Ordered Response Model for Allocation and Earnings," Kyklos, Wiley Blackwell, vol. 41(1), pages 113-41.
- Gibbons, Robert & Waldman, Michael, 1999. "Careers in organizations: Theory and evidence," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 36, pages 2373-2437 Elsevier.
- Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
- A. Gautier, Pieter & J. van den Berg, Gerard & C. van Ours, Jan & Ridder, Geert, 2002.
"Worker turnover at the firm level and crowding out of lower educated workers,"
European Economic Review,
Elsevier, vol. 46(3), pages 523-538, March.
- Berg, Gerard J. van den & Gautier, Pieter A. & Ours, Jan C., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Serie Research Memoranda 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Berg, G. van den & Gautier, P.A. & Ours, J.C. van & Ridder, G., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Discussion Paper 98.104, Tilburg University, Center for Economic Research.
- Gautier, P.A. & Berg, G. van den & Ours, J.C. van & Ridder, G., 2002. "Worker turnover at the firm level and crowding out of lower educated workers," Open Access publications from Tilburg University urn:nbn:nl:ui:12-91480, Tilburg University.
- Alfonso Alba-Ramírez, 1993. "Mismatch in the Spanish Labor Market: Overeducation?," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 259-278.
- Alba, Alfonso, 1993. "Mismatch in the Spanish labor market : overeducation?," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/4561, Universidad Carlos III de Madrid.
- Büchel, Felix & Mertens, Antje, 2000. "Overeducation, Undereducation, and the Theory of Career Mobility," IZA Discussion Papers 195, Institute for the Study of Labor (IZA).
- John Robst, 1995. "Career Mobility, Job Match, and Overeducation," Eastern Economic Journal, Eastern Economic Association, vol. 21(4), pages 539-550, Fall.
- Sicherman, Nachum, 1991.
""Overeducation" in the Labor Market,"
Journal of Labor Economics,
University of Chicago Press, vol. 9(2), pages 101-22, April.
- Nachum Sicherman, 1987. "Over-Education in the Labor Market," University of Chicago - George G. Stigler Center for Study of Economy and State 48, Chicago - Center for Study of Economy and State.
- Hartog, Joop & Oosterbeek, Hessel, 1988. "Education, allocation and earnings in the Netherlands: 0verschooling?," Economics of Education Review, Elsevier, vol. 7(2), pages 185-194, April.
- 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.
- Brynin, Malcolm & Lichtwardt, Beate & Longhi, Simonetta, 2006.
"Overqualification: major or minor mismatch?,"
ISER Working Paper Series
2006-17, Institute for Social and Economic Research.
- Verhaest, Dieter & Schatteman, Tom, 2010. "Overeducation in the early career: an analysis using sequence techniques," Working Papers 2010/09, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
- Lamo, Ana & Messina, Julián, 2010.
"Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators,"
Working Paper Series
1215, European Central Bank.
- Lamo, Ana & Messina, Julián, 2010. "Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators," Economics of Education Review, Elsevier, vol. 29(6), pages 1086-1099, December.
- Lamo, Ana & Messina, Julián, 2010. "Formal Education, Mismatch and Wages after Transition: Assessing the Impact of Unobserved Heterogeneity Using Matching Estimators," IZA Discussion Papers 4982, Institute for the Study of Labor (IZA).
- Luiz Alberto Esteves, 2009.
"Incompatibilidade Escolaridade-Ocupação e Salários: Evidências de uma Empresa Industrial Brasileira,"
Revista Brasileira de Economia,
FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 63(2), pages 77-90, June.
- Luiz Alberto Esteves, 2007. "Incompatibilidade Escolaridade-Ocupação e Salários: Evidências de uma Empresa Industrial Brasileira," Working Papers 0059, Universidade Federal do Paraná, Department of Economics.
- Lindley, Joanne, 2009.
"The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey,"
Economics of Education Review,
Elsevier, vol. 28(1), pages 80-89, February.
- Joanne Lindley, 2007. "The Over-Education of UK Immigrants and Minority Ethnic Groups: Evidence from the Labour Force Survey," Working Papers 2007013, The University of Sheffield, Department of Economics, revised Sep 2007.
- Garcia-Aracil, Adela & Velden, Rolf van der, 2008. "Competencies for young European higher education graduates: labor market mismatches and their payoffs," Open Access publications from Maastricht University urn:nbn:nl:ui:27-17100, Maastricht University.
- Lourdes Badillo Amador & Angel López Nicolás & Luis E. Vila, 2008. "The Consequences on Job Satisfaction of Job-Worker Educational and Skill Mismatches in the Spanish Labour Market: a Panel Analysis," Working Papers 2008-32, FEDEA.
- Belfield, Clive, 2010. "Over-education: What influence does the workplace have?," Economics of Education Review, Elsevier, vol. 29(2), pages 236-245, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.