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Overeducation and Mismatch in the Labor Market

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  • Leuven, Edwin

    () (University of Oslo)

  • Oosterbeek, Hessel

    () (University of Amsterdam)

Abstract

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.

Suggested Citation

  • Leuven, Edwin & Oosterbeek, Hessel, 2011. "Overeducation and Mismatch in the Labor Market," IZA Discussion Papers 5523, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp5523
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    References listed on IDEAS

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    1. 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.
    2. In�s Hardoy & P�l Sch�ne, 2014. "Returns to pre-immigration education for non-western immigrants: why so low?," Education Economics, Taylor & Francis Journals, vol. 22(1), pages 48-72, February.
    3. van der Meer, Peter H., 2009. "Investments in education: Too much or not enough?," Economics Letters, Elsevier, vol. 102(3), pages 195-197, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    wage equation; underschooling; overschooling; mismatch;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education

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