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The effect of educational mismatch on wages for 25 countries

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  • Peter Galasi

    (Department of Human Resources, Corvinus University of Budapest)

Abstract

By making use of the Duncan&Hoffman model, the paper estimates returns to educational mismatch using comparable microdata for 25 European countries. Our aim is to investigate the extent to which the main empirical regularities produced by other papers on the subject are confirmed by our data base. On the basis of tests proposed by Hartog&Oosterbeek, we also consider whether the observed empirical patterns are in line with the Mincerian basic human capital model and Thurow’s job competition model. Using Heckman’s sample-selection estimator, we find that results are rather consistent with those found in the literature, and that the job-competition model could be accepted, whereas the Mincerian human capital model could be rejected for most of the countries.

Suggested Citation

  • Peter Galasi, 2008. "The effect of educational mismatch on wages for 25 countries," Budapest Working Papers on the Labour Market 0808, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:bworkp:0808
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    File URL: http://econ.core.hu/file/download/bwp/BWP0808.pdf
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    References listed on IDEAS

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    19. Borghans, L. & de Grip, A., 1999. "Skills and low pay: upgrading or overeducation?," ROA Research Memorandum 5E, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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    Cited by:

    1. Nieto, S. & Ramos, R., 2011. "¿La sobreeducación de los padres afecta al rendimiento académico de sus hijos?," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 11(3).
    2. Riccardo Leoni, 2011. "Employability of graduates and development of competencies: mind the gap and mind the step! Empirical evidence for Italy," Working Papers (-2012) 1101, University of Bergamo, Department of Economics.
    3. Caroleo, Floro Ernesto & Pastore, Francesco, 2015. "Overeducation: A Disease of the School-to-Work Transition System," IZA Discussion Papers 9049, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    job-education matching; overeducation; undereducation; returns to over- and undereducation; international comparison;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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

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