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Overeducation and wages: the role of cognitive skills and personality traits

Author

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  • Marta Palczyńska

    (Institute for Structural Research (IBS), Warsaw)

Abstract

This article investigates the extent to which personality traits and cognitive skills can be seen as potential determinants of overeducation, and can explain the overeducation wage penalty. Using a representative survey of the Polish working-age population with well-established measures of cognitive skills and personality traits, I find that accounting for personality and cognitive skills does not change the size and the statistical significance of overeducation wage penalty estimates. My results also demonstrate that personality is one of the contributors to the risk of being overeducated among workers aged 18–29, but not among workers aged 30–68. Among younger workers, agreeable individuals are more likely to be overeducated, while conscientious individuals are less likely to be overeducated. Moreover, lower numeracy skills are associated with higher probability of being overeducated.

Suggested Citation

  • Marta Palczyńska, 2021. "Overeducation and wages: the role of cognitive skills and personality traits," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 21(1), pages 85-111.
    • Handle: RePEc:bic:journl:v:21:y:2021:i:1:p:85-111
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    Cited by:

    1. Zhidi Pan & Yan Wang & Zhijun Liu, 2025. "Over-Education, Job Satisfaction, and Intention to Quit: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(1), pages 287-307, January.
    2. Giorgio Brunello & Piero Esposito & Lorenzo Rocco & Sergio Scicchitano, "undated". "Do Classical Studies Open your Mind?," "Marco Fanno" Working Papers 0312, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Jones, Melanie & Kaya, Ezgi & Nan, Jiarui, 2025. "Overeducation, earnings and job satisfaction among graduates in China," China Economic Review, Elsevier, vol. 93(C).

    More about this item

    Keywords

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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