Wage effects of job-worker mismatches: Heterogeneous skills or institutional effects?
The strong wage effects related to mismatches between a workers education and that required in the job are usually attributed to assignment theory. This theory asserts that productivity and wages depend on the education-job match, which determines the utilization of skills. However, recent research shows that educational mismatches are only weakly related to skill utilization, which in any case fails to account for the bulk of the wage effects. Two alternative theories have been put forward to explain the observed wage effects. One points to wage setting institutions that cause wages to be based on job characteristics regardless of individual performance, the other to the heterogeneity of skills within a given educational level. Both theories explain existing results, but have never been tested directly. In this paper we show that the former theory explains observed wage effects in the public sector, and the latter theory those in the private sector.
|Date of creation:||2013|
|Contact details of provider:|| Postal: P.O. Box 616, 6200 MD Maastricht|
Phone: +31 (0)43 38 83 830
Web page: http://www.maastrichtuniversity.nl/
More information through EDIRC
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.:
- Arnaud Chevalier & Joanne Lindley, 2009.
"Overeducation and the skills of UK graduates,"
Journal of the Royal Statistical Society Series A,
Royal Statistical Society, vol. 172(2), pages 307-337.
- Chevalier, Arnaud & Lindley, Joanne, 2006. "Over-Education and the Skills of UK Graduates," IZA Discussion Papers 2442, Institute for the Study of Labor (IZA).
- Arnaud Chevalier & Joanne Lindley, 2007. "Over-Education and the Skills of UK Graduates," CEE Discussion Papers 0079, Centre for the Economics of Education, LSE.
- Arnaud Chevalier & Joanne Lindley, 2007. "Over-education and the skills of UK graduates," LSE Research Online Documents on Economics 19397, London School of Economics and Political Science, LSE Library.
- Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-452, July.
- Bauer, Thomas K., 2002. "Educational mismatch and wages: a panel analysis," Economics of Education Review, Elsevier, vol. 21(3), pages 221-229, June.
- Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
- Cohn, Elchanan & Ng, Ying Chu, 2000. "Incidence and wage effects of overschooling and underschooling in Hong Kong," Economics of Education Review, Elsevier, vol. 19(2), pages 159-168, April.
- McGuinness, Seamus & Sloane, Peter J., 2011. "Labour market mismatch among UK graduates: An analysis using REFLEX data," Economics of Education Review, Elsevier, vol. 30(1), pages 130-145, February.
- Seamus McGuinness & Peter J. Sloane, 2009. "Labour Market Mismatch Among UK Graduates; An Analysis Using REFLEX Data," Papers WP294, Economic and Social Research Institute (ESRI).
- McGuinness, Seamus & Sloane, Peter J., 2009. "Labour Market Mismatch Among UK Graduates: An Analysis Using REFLEX Data," IZA Discussion Papers 4168, Institute for the Study of Labor (IZA).
- repec:eme:ijmpps:v:34:y:2013:i:1:p:416-428 is not listed on IDEAS
- Gyourko, Joseph & Tracy, Joseph, 1988. "An Analysis of Public- and Private-Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," Journal of Labor Economics, University of Chicago Press, vol. 6(2), pages 229-253, April.
- Joseph Gyourko & Joseph Tracy, 1986. "An Analysis of Public and Private Sector Wages Allowing for Endogenous Choices of Both Government and Union Status," NBER Working Papers 1920, National Bureau of Economic Research, Inc.
- Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March.
- Lourdes Badillo-Amador, 2013. "Education and skill mismatches: wage and job satisfaction consequences," International Journal of Manpower, Emerald Group Publishing, vol. 34(5), pages 416-428, August.
- Giorgio Di Pietro & Peter Urwin, 2006. "Education and skills mismatch in the Italian graduate labour market," Applied Economics, Taylor & Francis Journals, vol. 38(1), pages 79-93.
- Di Pietro, Giorgio & Peter Urwin, 2003. "Education and Skills Mismatch in the Italian Graduate Labour Market," Royal Economic Society Annual Conference 2003 59, Royal Economic Society.
- Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-122, April.
- Nachum Sicherman, 1987. "Over-Education in the Labor Market," University of Chicago - George G. Stigler Center for Study of Economy and State 48, Chicago - Center for Study of Economy and State.