Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data
This paper provides the first available estimates of the impact of overeducation on wages of AlmaLaurea university graduates. The analysis focuses on jobs held 5 years after the graduation attained in 2005. Overeducation / overskilling are relatively high when compared to those in similarly advanced economies, and persistent over the years after graduation. Ceteris paribus they tend to be more frequent among children of parents with lower educational levels, through school tracking. The degrees more frequently associated to overeducation are: Agriculture, Arts, Education, Languages, Physical Education, Political Sciences, and Psychology. Working while studying and having started the university later than the curricular years are also factors. Moreover, we estimate a conditional wage penalty of about 10% of the median wage when we adopt the "to get" (overeducation) and of about 6.7% when we adopt the "to do" (overskilling) definition. However, the personal attributes that dispose individuals to be mismatched might also reduce the probability of finding a job. Controlling for this source of sample selection bias by using the Heckit procedure, we find that the wage penalty associated to overeducation / overskilling goes up to 35 and 74 percent, respectively. This is support for the job competition and the job assignment models versus the search theoretical model, suggesting that the non-employed would be more likely overeducated / overskilled if they found a job.
|Date of creation:||19 Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 0815474736
Fax: +39 0815474750
Web page: http://www.crisei.uniparthenope.it/
More information through EDIRC
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.:
- Brunello, Giorgio & Checchi, Daniele, 2006.
"Does School Tracking Affect Equality of Opportunity? New International Evidence,"
IZA Discussion Papers
2348, Institute for the Study of Labor (IZA).
- Giorgio Brunello & Daniele Checchi, 2007. "Does school tracking affect equality of opportunity? New international evidence," Economic Policy, CEPR;CES;MSH, vol. 22, pages 781-861, October.
- Daniele Checchi & Giorgio Brunello, 2006. "Does School Tracking Affect Equality of Opportunity? New International Evidence," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1044, Universitá degli Studi di Milano.
- Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, 07.
- Floro Ernesto Caroleo & Francesco Pastore, 2012.
"Talking about the Pigou paradox: Socio-educational background and educational outcomes of AlmaLaurea,"
International Journal of Manpower,
Emerald Group Publishing, vol. 33(1), pages 27-50, June.
- Caroleo, Floro Ernesto & Pastore, Francesco, 2011. "Talking about the Pigou Paradox: Socio-Educational Background and Educational Outcomes of AlmaLaurea," IZA Discussion Papers 6021, Institute for the Study of Labor (IZA).
- Mavromaras, Kostas & McGuinness, Seamus & O?Leary, Nigel & Sloane, Peter & Fok, Yin King, 2009. "Job Mismatches and Labour Market Outcomes," Papers WP314, Economic and Social Research Institute (ESRI).
- Patrizia Ordine & Giuseppe Rose, 2009. "Overeducation and Instructional Quality: A Theoretical Model and Some Facts," Journal of Human Capital, University of Chicago Press, vol. 3(1), pages 73-105.
- Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
- Stewart, Mark B, 1982.
"On Least Squares Estimation when the Dependent Variable is Grouped,"
The Warwick Economics Research Paper Series (TWERPS)
207, University of Warwick, Department of Economics.
- Stewart, Mark B, 1983. "On Least Squares Estimation When the Dependent Variable Is Grouped," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 737-53, October.
- Mark B. Stewart, 1982. "On Least Squares Estimation When the Dependent Variable is Grouped," Working Papers 539, Princeton University, Department of Economics, Industrial Relations Section..
- Giuseppe Croce & Emanuela Ghignoni, 2011.
"Overeducation and spatial flexibility in Italian local labour markets,"
145, University of Rome La Sapienza, Department of Public Economics.
- Croce, Giuseppe & Ghignoni, Emanuela, 2011. "Overeducation and spatial flexibility in Italian local labour markets," MPRA Paper 29670, University Library of Munich, Germany.
- Aina, Carmen & Pastore, Francesco, 2012. "Delayed Graduation and Overeducation: A Test of the Human Capital Model versus the Screening Hypothesis," IZA Discussion Papers 6413, Institute for the Study of Labor (IZA).
- Massimiliano Bratti & Daniele Checchi & Guido de Blasio, 2008.
"Does the Expansion of Higher Education Increase the Equality of Educational Opportunities? Evidence from Italy,"
CEIS, vol. 22(s1), pages 53-88, 06.
- Massimiliano Bratti & Daniele Checchi & Guido de Blasio, 2008. "Does the expansion of higher education increase the equality of educational opportunities? Evidence from Italy," Temi di discussione (Economic working papers) 679, Bank of Italy, Economic Research and International Relations Area.
- Bratti, Massimiliano & Checchi, Daniele & de Blasio, Guido, 2008. "Does the Expansion of Higher Education Increase the Equality of Educational Opportunities? Evidence from Italy," IZA Discussion Papers 3361, Institute for the Study of Labor (IZA).
- Luis Ortiz, 2010. "Not the right job, but a secure one," Work, Employment & Society, British Sociological Association, vol. 24(1), pages 47-64, March.
- 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.
- Marco Pecoraro, 2014.
"Is There Still a Wage Penalty for Being Overeducated But Well-matched in Skills? A Panel Data Analysis of a Swiss Graduate Cohort,"
CEIS, vol. 28(3), pages 309-337, 09.
- Marco PECORARO, 2011. "Is there still a wage penalty for being overeducated but well-matched in skills? A panel data analysis of a Swiss graduate cohort," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Richard R. Verdugo & Naomi Turner Verdugo, 1989. "The Impact of Surplus Schooling on Earnings: Some Additional Findings," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 629-643.
- Floro Ernesto Caroleo & Francesco Pastore, 2007. "The Youth Experience Gap: Explaining Differences across EU Countries," Quaderni del Dipartimento di Economia, Finanza e Statistica 41/2007, Università di Perugia, Dipartimento Economia.
- Mary Silles & Peter Dolton, 2002.
"The Effects of Over-Education on Earnings in the Graduate Labour Market,"
Economics Series Working Papers
126, University of Oxford, Department of Economics.
- Dolton, Peter J. & Silles, Mary A., 2008. "The effects of over-education on earnings in the graduate labour market," Economics of Education Review, Elsevier, vol. 27(2), pages 125-139, April.
- Davia, Maria A. & McGuinness, Seamus & O'Connell, Philip J., 2010. "Explaining International Differences in Rates of Overeducation in Europe," Papers WP365, Economic and Social Research Institute (ESRI).
- Brynin, Malcolm & Longhi, Simonetta, 2009.
"Overqualification: Major or minor mismatch?,"
Economics of Education Review,
Elsevier, vol. 28(1), pages 114-121, February.
- Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
- Ides Nicaise, 2001. "Human capital, reservation wages and job competition: Heckman's lambda re-interpreted," Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 309-315.
- repec:ebl:ecbull:v:28:y:2003:i:25:p:a25 is not listed on IDEAS
- Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
- Nordin, Martin & Persson, Inga & Rooth, Dan-Olof, 2008.
"Education-Occupation Mismatch: Is There an Income Penalty?,"
IZA Discussion Papers
3806, Institute for the Study of Labor (IZA).
- Nordin, Martin & Persson, Inga & Rooth, Dan-Olof, 2010. "Education-occupation mismatch: Is there an income penalty?," Economics of Education Review, Elsevier, vol. 29(6), pages 1047-1059, December.
- Nordin, Martin & Persson, Inga & Rooth, Dan-Olof, 2009. "Education-occupation mismatch: Is there an income penalty?," Working Papers 2009:1, Lund University, Department of Economics.
- Francesca Sgobbi & Fátima Suleman, 2013. "A Methodological Contribution To Measuring Skill (Mis)Match," Manchester School, University of Manchester, vol. 81(3), pages 420-437, 06.
- Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
- Glenda Quintini, 2011. "Over-Qualified or Under-Skilled: A Review of Existing Literature," OECD Social, Employment and Migration Working Papers 121, OECD Publishing.
- Ghignoni, Emanuela & Verashchagina, Alina, 2014.
"Educational qualifications mismatch in Europe. Is it demand or supply driven?,"
Journal of Comparative Economics,
Elsevier, vol. 42(3), pages 670-692.
- Emanuela Ghignoni & Alina Verashchagina, 2012. "Educational qualifications mismatch in Europe Is it demand or supply driven?," Working Papers 154, University of Rome La Sapienza, Department of Public Economics.
- Verhaest Dieter & Velden Rolf van der, 2010. "Cross-country differences in graduate overeducation and its persistence," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- 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.
- Francesco Pastore & Lia Ambrosio, 2003. "XVIII AIEL Conference," Economics Bulletin, AccessEcon, vol. 28(25), pages A25.
- Lorenzo Cappellari, 2004. "The Effects Of High School Choices On Academic Performance And Early Labour Market Outcomes," Royal Economic Society Annual Conference 2004 92, Royal Economic Society.
- Kostas Mavromaras & Seamus McGuinness & Nigel O'Leary & Peter Sloane & Zhang Wei, 2013. "Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 382-395, 09.
- Aina Carmen & Baici Eliana & Casalone Giorgia & Pastore Francesco, 2013. "Il fuoricorsismo tra falsi miti e realtà," Economia & lavoro, Carocci editore, issue 1, pages 147-154.
- Giuseppe Croce & Emanuela Ghignoni, 2012. "Demand and Supply of Skilled Labour and Overeducation in Europe: A Country-level Analysis," Comparative Economic Studies, Palgrave Macmillan, vol. 54(2), pages 413-439, June.
When requesting a correction, please mention this item's handle: RePEc:crj:dpaper:18_2012. 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: (Margherita Gallo)
If references are entirely missing, you can add them using this form.