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A Panel Data Analysis of the Incidence and Impact of Over-education

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  • Joanne Lindley

    ()

  • Steven McIntosh

    ()
    (Department of Economics, The University of Sheffield)

Abstract

This paper adds to the overeducation literature using panel data from the British Household Panel Survey. Much has been written about who is more likely to be overeducated, and the impact of being overeducated on wages, at particular points in time using cross-sectional data. Panel data allows us to control for unobserved individual heterogeneity in the determinants of incidence and impact of overeducation. The paper goes on to estimate the determinants of transitions out of overeducation, providing new information about its duration, and the factors that influence being in, and escaping from, this state.

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Bibliographic Info

Paper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2008009.

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Length: 36 pages
Date of creation: Jul 2008
Date of revision: Jul 2008
Handle: RePEc:shf:wpaper:2008009

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Related research

Keywords: Over-education; Skills;

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References

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  1. Harry J. Holzer & Robert J. LaLonde, 1999. "Job Change and Job Stability Among Less-Skilled Young Workers," JCPR Working Papers 80, Northwestern University/University of Chicago Joint Center for Poverty Research.
  2. Gregg, Paul & Manning, Alan, 1997. "Skill-biassed change, unemployment and wage inequality," European Economic Review, Elsevier, vol. 41(6), pages 1173-1200, June.
  3. Chevalier, Arnaud & Lindley, Joanne, 2006. "Over-Education and the Skills of UK Graduates," IZA Discussion Papers 2442, Institute for the Study of Labor (IZA).
  4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  5. Frank, Robert H, 1978. "Why Women Earn Less: The Theory and Estimation of Differential Overqualification," American Economic Review, American Economic Association, vol. 68(3), pages 360-73, June.
  6. Nachum Sicherman, 1987. "Over-Education in the Labor Market," University of Chicago - George G. Stigler Center for Study of Economy and State 48, Chicago - Center for Study of Economy and State.
  7. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
  8. Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, vol. 21(3), pages 221-229, June.
  9. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
  10. Dickens, Richard & Gregg, Paul & Wadsworth, Jonathan, 2000. "New Labour and the Labour Market," Oxford Review of Economic Policy, Oxford University Press, vol. 16(1), pages 95-113, Spring.
  11. 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.
  12. McGoldrick, KimMarie & Robst, John, 1996. "Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification," American Economic Review, American Economic Association, vol. 86(2), pages 280-84, May.
  13. Mendes de Oliveira, M. & Santos, M. C. & Kiker, B. F., 2000. "The role of human capital and technological change in overeducation," Economics of Education Review, Elsevier, vol. 19(2), pages 199-206, April.
  14. P. J. Sloane & H. Battu & P. T. Seaman, 1996. "Overeducation and the formal education/experience and training trade-off," Applied Economics Letters, Taylor & Francis Journals, vol. 3(8), pages 511-515.
  15. Joanne Lindley, 2007. "The Over-Education of UK Immigrants and Minority Ethnic Groups: Evidence from the Labour Force Survey," Working Papers 2007013, The University of Sheffield, Department of Economics, revised Sep 2007.
  16. Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, vol. 70(279), pages 509-531, 08.
  17. Francis Green & Steven McIntosh, 2007. "Is there a genuine under-utilization of skills amongst the over-qualified?," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 427-439.
  18. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
  19. Felix Buchel & Antje Mertens, 2004. "Overeducation, undereducation, and the theory of career mobility," Applied Economics, Taylor & Francis Journals, vol. 36(8), pages 803-816.
  20. Battu, Harminder & Sloane, Peter J., 2002. "Overeducation and Ethnic Minorities in Britain," IZA Discussion Papers 650, Institute for the Study of Labor (IZA).
  21. Green, Francis & McIntosh, Steven & Vignoles, Anna, 2002. "The Utilization of Education and Skills: Evidence from Britain," Manchester School, University of Manchester, vol. 70(6), pages 792-811, December.
  22. Felix Buchel & Harminder Battu, 2003. "The Theory of Differential Overqualification: Does it Work?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(1), pages 1-16, February.
  23. Kiker, B. F. & Santos, Maria C. & de Oliveira, M. Mendes, 1997. "Overeducation and undereducation: Evidence for Portugal," Economics of Education Review, Elsevier, vol. 16(2), pages 111-125, April.
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Citations

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Cited by:
  1. Abbi Kedir & Andri Kyrizi & Francisco Martinez-Mora, 2012. "Signalling and Productivity Effects of Overeducation: Is It Really a Waste of Resources?," Discussion Papers in Economics 12/19, Department of Economics, University of Leicester.
  2. Bender, Keith A. & Roche, Kristen, 2013. "Educational mismatch and self-employment," Economics of Education Review, Elsevier, vol. 34(C), pages 85-95.

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