Educational Mismatches and Earnings: Extensions of Occupational Mobility Theory and Evidence of Human Capital Depreciation
Using a human capital theory framework, this study examines the impact of educational mismatches on earnings and occupational mobility. Occupational mobility theory suggests that overeducated workers observe greater upward occupational mobility and undereducated workers observe lower upward occupational mobility. By extension, this leads to relatively high earnings growth for overeducated workers and relatively low earnings growth for undereducated workers. Moreover, overeducated workers are probably transient relative to their undereducated counterparts, so employers have few incentives to invest in their human capital. Accordingly, their experience will be rewarded at lower rates. These results may also occur if the unused human capital of overeducated workers depreciates with nonuse. The data verify these predictions. Insights on the link between experience and educational mismatches are also examined.
Volume (Year): 14 (2006)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CEDE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CEDE20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Albrecht, James W. & Edin, Per-Anders & Sundström, Marianne & Vroman, Susan B., 1996.
"Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data,"
Working Paper Series
1996:23, Uppsala University, Department of Economics.
- James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
- Albrecht, J & Edin, P-A & Sundstrom, M & Vroman, S-B, 1996. "Career Interruptions and Subsequent Earning : A Reexamination Using Swedish Data," Papers 1996-23, Uppsala - Working Paper Series.
- 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.
- Rubb, S., 2003. "Overeducation in the labor market: a comment and re-analysis of a meta-analysis," Economics of Education Review, Elsevier, vol. 22(6), pages 621-629, December.
- Robst, John, 1995. "College quality and overeducation," Economics of Education Review, Elsevier, vol. 14(3), pages 221-228, September.
- van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April.
- Mincer, Jacob & Polachek, Solomon, 1974.
"Family Investment in Human Capital: Earnings of Women,"
Journal of Political Economy,
University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
- Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
- Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
- Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
- Oded Galor & Nachum Sicherman, 1988.
"A Theory of Career Mobility,"
University of Chicago - George G. Stigler Center for Study of Economy and State
51, Chicago - Center for Study of Economy and State.
- 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.
- Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, vol. 21(3), pages 221-229, June.
- Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-452, July.
- Michael Quinn & Stephen Rubb, 2005. "The importance of education-occupation matching in migration decisions," Demography, Springer;Population Association of America (PAA), vol. 42(1), pages 153-167, February.
- Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
When requesting a correction, please mention this item's handle: RePEc:taf:edecon:v:14:y:2006:i:2:p:135-154. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.