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Overeducation and its effects on wages: a closer look at the Spanish regions

Author

Listed:
  • Hernández, Laura

    (Ivie)

  • Serrano, Lorenzo

    (Universitat de València & Ivie)

Abstract

This paper uses data from the 2004 to 2009 Living Conditions Survey (LCS) to analyze the wage gap between the adjusted and the overqualified employees in the Spanish regions using standard Mincer equations, quantile regression and the Oaxaca-Blinder decomposition. The results indicate that in Spain there is a 28% difference between the gross hourly wage between the overqualified and well-matched employees, of which 25 percentage points correspond to the discrimination effect and only three percentage points correspond to the characteristics of the individuals and the firms they work in. These results show that the effects of overeducation on the regional economies are genuine and substantial and present a considerable heterogeneity.

Suggested Citation

  • Hernández, Laura & Serrano, Lorenzo, 2012. "Overeducation and its effects on wages: a closer look at the Spanish regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 59-90.
    • Handle: RePEc:ris:invreg:0004
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    References listed on IDEAS

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    1. Alfonso Alba-Ramírez, 1993. "Mismatch in the Spanish Labor Market: Overeducation?," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 259-278.
    2. Elisabet Motellón & Enrique López‐Bazo & Mayssun El‐Attar, 2011. "Regional Heterogeneity In Wage Distributions: Evidence From Spain," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 558-584, August.
    3. Lorenzo Serrano Martínez, 1999. "- Salarios Regionales Y Dotaciones De Capital Humano," Working Papers. Serie EC 1999-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Inmaculada Garcia & Jose Alberto Molina, 2002. "Inter-regional wage differentials in Spain," Applied Economics Letters, Taylor & Francis Journals, vol. 9(4), pages 209-215.
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    Cited by:

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    2. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.

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    More about this item

    Keywords

    Overeducation; education mismatch; returns to education; quantile regression; regional labour markets;
    All these keywords.

    JEL classification:

    • 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
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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