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Can over-education account for the positive association between education and within-groups wage inequality? A note

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Budria, Santiago

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Abstract

International evidence shows that returns to education are increasing when moving up along the wage distribution. While researchers have focused on the inequality implications of this finding, little attention has been paid to its causes. This paper asks whether the over-education phenomenon is responsible for the observed pattern. To that purpose, recent data from the European Community Household Panel and several measures of over-education based on the worker’s self-assessment are used. The results show that over-education is not a convincing explanation.

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File URL: http://mpra.ub.uni-muenchen.de/92/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 92.

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Date of creation: 2005
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Handle: RePEc:pra:mprapa:92

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Keywords: Returns to education over-education quantile regression

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Find related papers by JEL classification:
C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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  1. F Green & S McIntosh & A Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers 0435, Centre for Economic Performance, LSE.
  2. Pereira, Pedro Telhado & Martins, Pedro Silva, 2000. "Does Education Reduce Wage Inequality? Quantile Regressions Evidence from Fifteen European Countries," IZA Discussion Papers 120, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. 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. [Downloadable!] (restricted)
  4. Machin, Stephen, 1996. "Wage Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 47-64, Spring.
  5. Sloane, P J & Battu, H & Seaman, P T, 1999. "Overeducation, Undereducation and the British Labour Market," Applied Economics, Taylor and Francis Journals, vol. 31(11), pages 1437-53, November. [Downloadable!] (restricted)
  6. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465. [Downloadable!]
  7. Fersterer, Josef & Winter-Ebmer, Rudolf, 2003. "Are Austrian returns to education falling over time?," Labour Economics, Elsevier, vol. 10(1), pages 73-89, February. [Downloadable!] (restricted)
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  8. Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, vol. 70(279), pages 509-531, 08. [Downloadable!] (restricted)
  9. Pereira, Pedro Telhado & Martins, Pedro Silva, 2001. "Is there a Return-Risk Link in Education?," IZA Discussion Papers 321, Institute for the Study of Labor (IZA). [Downloadable!]
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