Meeting at School. Assortative Matching in Partnerships and Over-Education
This paper argues that assortative matching may explain over-education. Education determines individuals' income and, due to the presence of assortative matching, the quality of the partner, who can be a colleague or a spouse. Thus an individual acquires some education to improve the expected partner's quality. But since everybody does that, the partner's quality does not increase and over-education emerges. Tax progression to correct over-education has ambiguous effects on the educational incentives according to the individuals' ability. We test the model using the British Household Panel Survey. The empirical results support our theoretical findings.
|Date of creation:||Jan 2011|
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- Ana I Moro-Egido & Santiago Budría, .
"Overeducation and Wages in Europe: Evidence from Quantile Regression,"
Studies on the Spanish Economy
- Ana I. Moro Egido & Santiago Budría, 2007. "Overeducation and Wages in Europe: Evidence from Quantile Regression," Economic Working Papers at Centro de Estudios Andaluces E2007/04, Centro de Estudios Andaluces.
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