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Can over-education account for the positive association between education and within-groups wage inequality? A note

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  • Budria, Santiago

Abstract

International evidence shows that returns to education are increasing when moving up along the wage distribution. While researchers have focused on the inequality implications of this finding, little attention has been paid to its causes. This paper asks whether the over-education phenomenon is responsible for the observed pattern. To that purpose, recent data from the European Community Household Panel and several measures of over-education based on the worker’s self-assessment are used. The results show that over-education is not a convincing explanation.

Suggested Citation

  • Budria, Santiago, 2005. "Can over-education account for the positive association between education and within-groups wage inequality? A note," MPRA Paper 92, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92
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    File URL: https://mpra.ub.uni-muenchen.de/92/1/MPRA_paper_92.pdf
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    References listed on IDEAS

    as
    1. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
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    8. Telhado Pereira, Pedro & Silva Martins, Pedro, 2002. "Is there a return-risk link in education?," Economics Letters, Elsevier, vol. 75(1), pages 31-37, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Returns to education; over-education; quantile regression;
    All these keywords.

    JEL classification:

    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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