Advanced Search
MyIDEAS: Login

Objective overeducation and worker well-being: a shadow price approach

Contents:

Author Info

  • D. VERHAEST

    ()

  • E. OMEY

Abstract

This paper examines, for a sample of Flemish school leavers, the relation between objective over-education and job satisfaction by applying a shadow price approach. We differentiate between direct effects of overeducation and indirect effects via other job characteristics that are associated with overeducation. Additional fixed-effects estimates are executed to account for individual heterogeneity. The utility consequences of overeducation are found to be large and cannot be compensated by a reasonable wage increase at the start of the first employment. These outcomes suggest that, at labour market entry, overeducation is largely involuntary, and is likely to induce negative productivity costs. The negative consequences of overeducation are also found to dimi-nish with years of work experience.

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://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_08_514.pdf
Download Restriction: no

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 08/514.

as in new window
Length: 32 pages
Date of creation: Apr 2008
Date of revision:
Handle: RePEc:rug:rugwps:08/514

Contact details of provider:
Postal: Hoveniersberg 4, B-9000 Gent
Phone: ++ 32 (0) 9 264 34 61
Fax: ++ 32 (0) 9 264 35 92
Web page: http://www.ugent.be/eb
More information through EDIRC

Related research

Keywords: overeducation; mismatch; underemployment; job satisfaction; well-being; shadow price;

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. Tsang, Mun Chiu, 1987. "The impact of underutilization of education on productivity: A case study of the U.S. Bell companies," Economics of Education Review, Elsevier, vol. 6(3), pages 239-254, June.
  2. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
  3. Khan, Linda J. & Morrow, Paula C., 1991. "Objective and subjective underemployment relationships to job satisfaction," Journal of Business Research, Elsevier, vol. 22(3), pages 211-218, May.
  4. D. Verhaest & E. Omey, 2004. "What determines measured overeducation?," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/216, Ghent University, Faculty of Economics and Business Administration.
  5. Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
  6. Richard B. Freeman, 1978. "Job Satisfaction as an Economic Variable," NBER Working Papers 0225, National Bureau of Economic Research, Inc.
  7. Buchel, Felix, 2002. "The effects of overeducation on productivity in Germany -- the firms' viewpoint," Economics of Education Review, Elsevier, vol. 21(3), pages 263-275, June.
  8. Cohn, Elchanan & Ng, Ying Chu, 2000. "Incidence and wage effects of overschooling and underschooling in Hong Kong," Economics of Education Review, Elsevier, vol. 19(2), pages 159-168, April.
  9. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 169-92, February.
  10. D. Verhaest & E. Omey, 2004. "The impact of overeducation and its measurement," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/215, Ghent University, Faculty of Economics and Business Administration.
  11. H. Battu & C.R. Belfield & P.J. Sloane, 2000. "How Well Can We Measure Graduate Over- Education and Its Effects?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171(1), pages 82-93, January.
  12. Clark, Andrew E. & Oswald, Andrew J., 1998. "Comparison-concave utility and following behaviour in social and economic settings," Journal of Public Economics, Elsevier, vol. 70(1), pages 133-155, October.
  13. van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 29-49, May.
  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. Ada Ferrer-i-Carbonell & Bernard M. S. van Praag, 2001. "The Subjective Costs of Health Losses Due to Chronic Diseases: An Alternative Model for Monetary Appraisal," Discussion Papers of DIW Berlin 262, DIW Berlin, German Institute for Economic Research.
  16. Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
  17. Vieira, José A. Cabral, 2005. "Skill mismatches and job satisfaction," Economics Letters, Elsevier, vol. 89(1), pages 39-47, October.
  18. Ada Ferrer-i-Carbonell & Bernard M.S. van Praag, 2002. "The Subjective Costs of Health Losses due to Chronic Diseases," Tinbergen Institute Discussion Papers 02-023/3, Tinbergen Institute.
  19. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  20. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
  21. J.-Matthias Graf Schulenburg, 2002. "Commentary," The European Journal of Health Economics, Springer, vol. 3(2), pages 138-138, June.
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. 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.
  2. Maria Mercedes Teijeiro Álvarez (ed.), 2013. "Investigaciones de Economía de la Educación," E-books Investigaciones de Economía de la Educación, Asociación de Economía de la Educación, edition 1, volume 8, number 08, 7.
  3. Eichhorst, Werner & Boeri, Tito & Braga, Michela & De Coen, An & Galasso, Vincenzo & Gerard, Maarten & Kendzia, Michael J. & Mayrhuber, Christine & Pedersen, Jakob Louis & Schmidl, Ricarda & Steiber, , 2013. "Report No. 53: Combining the Entry of Young People in the Labour Market with the Retention of Older Workers," IZA Research Reports 53, Institute for the Study of Labor (IZA).
  4. 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) 2012012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Budría, Santiago, 2012. "The shadow value of employer-provided training," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 494-514.
  6. Verhaest Dieter & Velden Rolf van der, 2010. "Cross-country differences in graduate overeducation and its persistence," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  7. Dieter Verhaest & Eddy Omey, 2013. "The Relationship Between Formal Education And Skill Acquisition In Young Workers' First Jobs," Manchester School, University of Manchester, vol. 81(4), pages 638-659, 07.
  8. Blázquez, Maite & Budría, Santiago, 2011. "Deprivation and Subjective Well-being: Evidence from Panel Data," Working Papers in Economic Theory 2011/08, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
  9. Stephan Kampelmann & François Rycx, 2012. "The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data," DULBEA Working Papers 12-05, ULB -- Universite Libre de Bruxelles.
  10. Aleksander Kucel & Montserrat Vilalta-Bufi, 2012. "Why do university graduates regret their study program? A comparison between Spain and the Netherlands," Working Papers in Economics 279, Universitat de Barcelona. Espai de Recerca en Economia.
  11. Verhaest, Dieter & Omey, Eddy, 2009. "The relation between formal education and skill acquisition in young workers first job," Working Papers 2009/07, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.

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:rug:rugwps:08/514. 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: (Nathalie Verhaeghe).

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.