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Causal Effects of Educational Mismatch in the Labor Market

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  • Kleibrink, Jan

Abstract

This paper analyses the causal effects of educational mismatch on wages, individual health and job satisfaction. As educational mismatch is subject to unobserved heterogeneity in all of these fields, different identification strategies are applied to derive causal effects. In the wage regressions, an FE model is estimated and new instrumental variables are introduced. Results show that the causal effects of educational mismatch are less severe than the majority of the literature has found when not controlling for unobserved heterogeneity. In the analysis on health and satisfaction effects, causality is achieved by differentiating between overeducated workers after a firm closure and those overeducated for other reasons. The results show that there are no causal effects of educational mismatch on any of these variables. --

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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order with number 79839.

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Date of creation: 2013
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Handle: RePEc:zbw:vfsc13:79839

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  15. John P. Haisken-DeNew & Jan Kleibrink, 2013. "Walking Wounded – The Causal Welfare Loss of Underemployment through Overeducation," Ruhr Economic Papers 0423, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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  19. Harmon, Colm & Walker, Ian, 2000. "The Returns to the Quantity and Quality of Education: Evidence for Men in England and Wales," Economica, London School of Economics and Political Science, vol. 67(265), pages 19-35, February.
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  21. 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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