Advanced Search
MyIDEAS: Login to save this paper or follow this series

Overeducation, Wages and Promotions within the Firm

Contents:

Author Info

  • Groeneveld, Sandra

    ()
    (Erasmus University Rotterdam)

  • Hartog, Joop

    ()
    (University of Amsterdam)

Abstract

We 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 Info

If 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.
File URL: http://ftp.iza.org/dp883.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 883.

as in new window
Length: 23 pages
Date of creation: Oct 2003
Date of revision:
Publication status: published in: Labour Economics, 2004, 11 (6), 701-714
Handle: RePEc:iza:izadps:dp883

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

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: career mobility; wages; overeducation; education; promotions;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 149-158, April.
  2. 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, Elsevier, vol. 46(3), pages 523-538, March.
  3. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 179-198, April.
  4. 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.
  5. Nachum Sicherman, 1987. "Over-Education in the Labor Market," University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State 48, Chicago - Center for Study of Economy and State.
  6. 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, Elsevier, vol. 19(2), pages 169-178, April.
  7. Büchel, Felix & Mertens, Antje, 2000. "Overeducation, Undereducation, and the Theory of Career Mobility," IZA Discussion Papers 195, Institute for the Study of Labor (IZA).
  8. Hartog, Joop & Oosterbeek, Hessel, 1988. "Education, allocation and earnings in the Netherlands: 0verschooling?," Economics of Education Review, Elsevier, Elsevier, vol. 7(2), pages 185-194, April.
  9. Gibbons, Robert & Waldman, Michael, 1999. "Careers in organizations: Theory and evidence," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 36, pages 2373-2437 Elsevier.
  10. L. Wade, 1988. "Review," Public Choice, Springer, Springer, vol. 58(1), pages 99-100, July.
  11. John Robst, 1995. "Career Mobility, Job Match, and Overeducation," Eastern Economic Journal, Eastern Economic Association, vol. 21(4), pages 539-550, Fall.
  12. Hartog, Joop, 1988. "An Ordered Response Model for Allocation and Earnings," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 41(1), pages 113-41.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Stijn BAERT & Bart COCKX & Dieter VERHAEST, 2012. "Overeducation at the start of the career - stepping stone or trap?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2012012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  2. Brynin, Malcolm & Longhi, Simonetta, 2009. "Overqualification: Major or minor mismatch?," Economics of Education Review, Elsevier, Elsevier, vol. 28(1), pages 114-121, February.
  3. Joanne Lindley, 2007. "The Over-Education of UK Immigrants and Minority Ethnic Groups: Evidence from the Labour Force Survey," Working Papers, The University of Sheffield, Department of Economics 2007013, The University of Sheffield, Department of Economics, revised Sep 2007.
  4. Kleibrink, Jan, 2013. "Causal Effects of Educational Mismatch in the Labor Market," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79839, Verein für Socialpolitik / German Economic Association.
  5. Verhaest, Dieter & Schatteman, Tom, 2010. "Overeducation in the early career: an analysis using sequence techniques," Working Papers, Hogeschool-Universiteit Brussel, Faculteit Economie en Management 2010/09, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  6. Verhaest Dieter & Velden Rolf van der, 2010. "Cross-country differences in graduate overeducation and its persistence," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  7. 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.
  8. Lamo, Ana & Messina, Julián, 2010. "Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators," Working Paper Series, European Central Bank 1215, European Central Bank.
  9. 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.
  10. Belfield, Clive, 2010. "Over-education: What influence does the workplace have?," Economics of Education Review, Elsevier, Elsevier, vol. 29(2), pages 236-245, April.
  11. L. Cattani & G. Guidetti & G. Pedrini, 2014. "Assessing the incidence and wage effects of overeducation among Italian graduates using a new measure for educational requirements," Working Papers wp939, Dipartimento Scienze Economiche, Universita' di Bologna.
  12. Kitae Sohn, 2010. "The Role of Cognitive and Noncognitive Skills in Overeducation," Journal of Labor Research, Springer, Springer, vol. 31(2), pages 124-145, June.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp883. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.