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Are Educational Mismatches Responsible for the ‘Inequality Increasing Effect’ of Education?

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  • Santiago Budría

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Abstract

This paper asks whether educational mismatches can account for the positive association between education and wage inequality found in the data. We use two different data sources, the European Community Household Panel and the Portuguese Labour Force Survey, and consider several types of mismatch, including overqualification, underqualification and skills mismatch. We test our hypothesis using two different measurement methods, the ‘statistical’ and the ‘subjective’ approach. The results are robust to the different choices and unambiguously show that the positive effect of education on wage inequality is not due to the prevalence of educational mismatches in the labour market.
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  • Santiago Budría, 2011. "Are Educational Mismatches Responsible for the ‘Inequality Increasing Effect’ of Education?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(3), pages 409-437, July.
    • Handle: RePEc:spr:soinre:v:102:y:2011:i:3:p:409-437
    DOI: 10.1007/s11205-010-9675-7
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    1. repec:bla:jecsur:v:32:y:2018:i:4:p:985-1015 is not listed on IDEAS

    More about this item

    Keywords

    Overeducation; Returns to education; Educational mismatch; Within-groups wage inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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