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The impact of overeducation and its measurement

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  • D. VERHAEST

    ()

  • E. OMEY

    ()

Abstract

The central focus of this article is the influence of over- and undereducation on job satisfaction, mobility, training participation and wages when four alternative mismatch measures are used. The sign, magnitude and significance of the effects largely diverge between these measures. When attained education is controlled for, overeducated workers are less satisfied, more mobile, participate less in training and earn less than adequately educated workers. With respect to undereducation, we have no clear results. When years of required education are controlled for, no robust results are found for job satisfaction and mobility. Overeducated workers earn more than adequately educated colleagues, but have similar training opportunities. None of the measures clearly outperforms the alternatives for the explanation of all variables of interest.

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Bibliographic Info

Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 04/215.

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Length: 32 pages
Date of creation: Jan 2004
Date of revision:
Handle: RePEc:rug:rugwps:04/215

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  1. Clark, A.E., 1995. "Job Satisfaction and Gender: Why Are Women so Happy at Work?," DELTA Working Papers 95-10, DELTA (Ecole normale supérieure).
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  13. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April.
  14. Hersch, Joni, 1991. "Education Match and Job Match," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 140-44, February.
  15. 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.
  16. Rosen, Sherwin, 1976. "A Theory of Life Earnings," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S45-67, August.
  17. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-22, April.
  18. Russell W. Rumberger, 1987. "The Impact of Surplus Schooling on Productivity and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 24-50.
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