Overeducation and Individual Heterogeneity
AbstractIn this paper, the efficiency of human capital investments is evaluated in the light of inadequate educational careers and skill obsolescence. Assuming heterogeneous returns to schooling and overeducation we use the potential outcome approach to measure the causal effect of human capital investments on earnings as a continuous treatment effect. Empirical evidence is based on a sample of West German full-time employed males from the "BIBB/IABStrukturerhebung 1998/99". Our estimate of the average treatment effect of an additional year of schooling (ATE) amounts to 8.7%, which does not differ much from conventional instrumental variable estimates. For skilled and high skilled workers, we find no evidence that the average returns to overeducation are lower than the average returns to required educuation, which differs from the evidence find in most traditional studies. There is evidence for considerable heterogeneity in the expected returns to overeducation. For 20 to 30% of the workers returns seem to be negative.
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 Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim in its series Working Papers of the Research Group Heterogenous Labor with number 03-01.
Length: 25 pages
Date of creation: 23 Apr 2003
Date of revision:
returns to schooling ; overeducation ; potential outcome approach ; conditional mean independence ; correlated random coefficient model;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
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.:
- Michel Lubrano & Luc Bauwens & Alan Kirman & Camelia Protopopescu, 2003.
"Ranking Economics Departments in Europe: A Statistical Approach,"
Journal of the European Economic Association,
MIT Press, vol. 1(6), pages 1367-1401, December.
- BAUWENS, Luc & KIRMAN, Alan & LUBRANO, Michel & PROTOPOPESCU, Camelia, 2003. "Ranking economics departments in Europe: a statistical approach," CORE Discussion Papers 2003050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BAUWENS, Luc & KIRMAN, Alan & LUBRANO, Michel & PROTOPOPESCU, Camelia, . "Ranking economics departments in Europe: a statistical approach," CORE Discussion Papers RP -1694, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kalaitzidakis, P. & Mamuneas, T.P. & Stengos, T., 2003. "Rankings of Academic Journals and Institutions," Working Papers 2003-8, University of Guelph, Department of Economics and Finance.
- Fabel, Oliver & Lehmann, Erik & Warning, Susanne, 2002. "Vorträge als Qualitätsindikator: Empirische Evidenz der Jahrestagungen des Vereins für Socialpolitik," Discussion Papers, Series 1 321, University of Konstanz, Department of Economics.
- Budria, Santiago, 2010.
"Are educational mismatches responsible for the ‘inequality increasing effect’ of education?,"
23420, University Library of Munich, Germany.
- Santiago Budría, 2011. "Are Educational Mismatches Responsible for the ‘Inequality Increasing Effect’ of Education?," Social Indicators Research, Springer, vol. 102(3), pages 409-437, July.
- David Audretsch & Erik Lehmann & Susanne Warning, 2004.
"University Spillovers: Does the Kind of Science Matter?,"
Industry and Innovation,
Taylor & Francis Journals, vol. 11(3), pages 193-206.
- David Audretsch & Erik Lehmann & Susanne Warning, 2004. "University Spillovers: Does the Kind of Science Matter?," Working Papers of the Research Group Heterogenous Labor 04-04, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
- Pohlmeier, Winfried & Pfeiffer, Friedhelm & Maier, Michael, 2004. "Returns to Education and Individual Heterogeneity," ZEW Discussion Papers 04-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Michael Gebel & Friedhelm Pfeiffer, 2010.
"Educational Expansion and Its Heterogeneous Returns for Wage Workers,"
Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften,
Duncker & Humblot, Berlin, vol. 130(1), pages 19-42.
- Gebel, Michael & Pfeiffer, Friedhelm, 2007. "Educational expansion and its heterogeneous returns for wage workers," ZEW Discussion Papers 07-010, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Michael Gebel & Friedhelm Pfeiffer, 2007. "Educational Expansion and Its Heterogeneous Returns for Wage Workers," SOEPpapers on Multidisciplinary Panel Data Research 13, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Markus Jochmann & Winfried Pohlmeier, 2004. "The Causal Effect of Schooling : empirical Evidence from Germany," Working Papers of the Research Group Heterogenous Labor 04-05, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
- Anton L. Flossmann & Winfried Pohlmeier, 2006. "Casual Returns to Education: A Survey on Empirical Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(1), pages 6-23, January.
- Pfeiffer, Friedhelm & Pohlmeier, Winfried, 2012. "Causal Returns to Schooling and Individual Heterogeneity," IZA Discussion Papers 6588, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gerald Eisenkopf).
If references are entirely missing, you can add them using this form.