Overeducation and Mismatch in the Labor Market
This paper surveys the economics literature on overeducation. The original motivation to study this topic were reports that the strong increase in the number of college graduates in the early 1970s in the US led to a decrease in the returns to college education. We argue that Duncan and Hoffman’s augmented wage equation – the workhorse model in the overeducation literature – in which wages are regressed on years of overschooling, years of required schooling and years of underschooling is at best loosely related to this original motivation. We discuss measurement and estimation issues and give an overview of the main empirical findings in this literature. Finally we given an appraisal of the economic lessons learned.
|Date of creation:||Feb 2011|
|Publication status:||published in: Handbook of the Economics of EducationErik Hanushek, F. Welch (eds.): Handbook of the Economics of Education, Elsevier Science, Vol. 4, 283 - 326|
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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.:
- Ewijk, R. van & Sleegers, P, "undated". "The effect of peer socioeconomic status on student achievement: a meta-analysis," Working Papers 20, Top Institute for Evidence Based Education Research.
- van der Meer, Peter H., 2009. "Investments in education: Too much or not enough?," Economics Letters, Elsevier, vol. 102(3), pages 195-197, March.
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