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Overeducation and earnings: some further paneldata evidence

  • Verhaest, Dieter

    ()

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Omey, Eddy

    (Universiteit Gent, Belgium)

It is generally found that overeducated workers earn less than adequately educated workers with similar years of education. We investigate whether this finding may be attributed to worker heterogeneity on the basis of panel data for Flemish school leavers and job analysis measurement. The estimated overeducation penalty at labour market entry diminishes but remains statistically significant after the inclusion of individual fixed effects. Yet, this penalty is found to drop with years of work experience. Our outcomes suggest that this drop results at least partly from the selection of overeducated individuals into better paying industries and firms.

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File URL: https://lirias.hubrussel.be/bitstream/123456789/2477/1/09HRP08.pdf
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Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2009/08.

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Length: 20 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:hub:wpecon:200908
Contact details of provider: Web page: http://research.hubrussel.be

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  1. Dieter Verhaest & Eddy Omey, 2006. "The Impact of Overeducation and its Measurement," Social Indicators Research, Springer, vol. 77(3), pages 419-448, 07.
  2. 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.
  3. 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.
  4. Pereira, Pedro T. & Martins, Pedro S., 2001. "Returns to Education and Wage Equations," IZA Discussion Papers 298, Institute for the Study of Labor (IZA).
  5. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 169-92, February.
  6. Dieter Verhaest & Eddy Omey, 2006. "Discriminating between alternative measures of over-education," Applied Economics, Taylor & Francis Journals, vol. 38(18), pages 2113-2120.
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