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The impact of education and mismatch on wages: Germany, 1984-2000

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  • Muysken, J.

    (General Economics 2 (Macro))

  • Hoppe, M.
  • Rieder, H.

Abstract

In analysing the impact of education on wage differentials and wage growth, we use next to personal characteristics (e. g. education and experience) also jobcharacteristics (e. g. skills required) to explain wages. We estimate wage equations on individual data for Germany, 1984 – 2000. When discussing observed andpreviously unobserved heterogeneity it turns out that personal characteristics like education and experience explain about half of the variation in wages. At least 20 per cent is explained by variation in job characteristics. When comparing the results with similar research for the Netherlands an the USA, the returns toexperience are the same in all countries, while the premiums on required skills and in particular education are much higher in the USA.
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Suggested Citation

  • Muysken, J. & Hoppe, M. & Rieder, H., 2016. "The impact of education and mismatch on wages: Germany, 1984-2000," Research Memorandum 031, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:2002031
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    File URL: https://cris.maastrichtuniversity.nl/ws/files/1329270/guid-46ab8b17-6380-4d80-a91b-5519ca3f5d8e-ASSET1.0.pdf
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    2. Brynin, Malcolm & Longhi, Simonetta, 2009. "Overqualification: Major or minor mismatch?," Economics of Education Review, Elsevier, vol. 28(1), pages 114-121, February.

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