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Much ado about nothing? The wage penalty of holding a Ph.D. degree but not a Ph.D. job position

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  • Gaeta, Giuseppe Lucio
  • Lavadera, Giuseppe Lubrano
  • Pastore, Francesco

Abstract

This paper contributes to the literature on overeducation by empirically investigating the wage penalty of job-education mismatch among Ph.D. holders who completed their studies in Italy; a country where the number of new doctoral recipients has dramatically increased over recent years while personnel employed in R&D activities is still below the European average. We use cross-sectional micro-data collected in 2009 and rely on different definitions of education-job mismatch such as, overeducation, overskilling and dissatisfaction with the use of skills. We find that overeducation and skills dissatisfaction are associated with significantly lower wages but there is no wage penalty from overskilling. Furthermore, those who simultaneously report overeducation and skills dissatisfaction experience a particularly high wage penalty.

Suggested Citation

  • Gaeta, Giuseppe Lucio & Lavadera, Giuseppe Lubrano & Pastore, Francesco, 2017. "Much ado about nothing? The wage penalty of holding a Ph.D. degree but not a Ph.D. job position," GLO Discussion Paper Series 12, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:12
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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Marco Pecoraro, 2014. "Is There Still a Wage Penalty for Being Overeducated But Well-matched in Skills? A Panel Data Analysis of a Swiss Graduate Cohort," LABOUR, CEIS, vol. 28(3), pages 309-337, September.
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    4. Floro Ernesto Caroleo & Francesco Pastore, 2012. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Discussion Papers 18_2012, CRISEI, University of Naples "Parthenope", Italy.
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    9. Seamus McGuinness, 2007. "How biased are the estimated wage impacts of overeducation? A propensity score matching approach," Applied Economics Letters, Taylor & Francis Journals, vol. 15(2), pages 145-149.
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    11. Giuseppe Lucio Gaeta, 2015. "Was it worth it? An empirical analysis of over-education among PhD recipients in Italy," International Journal of Social Economics, Emerald Group Publishing, vol. 42(3), pages 222-238, March.
    12. Kostas Mavromaras & Seamus McGuinness & Nigel O'Leary & Peter Sloane & Zhang Wei, 2013. "Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates," The Economic Record, The Economic Society of Australia, vol. 89(286), pages 382-395, September.
    13. Giuseppe Lucio Gaeta, 2013. "Matching Advanced Studies to the Skills Required for Work: The Case of PhD. Graduates in Italy," Economia dei Servizi, Società editrice il Mulino, issue 2, pages 177-188.
    14. Arnaud Chevalier, 2003. "Measuring Over-education," Economica, London School of Economics and Political Science, vol. 70(279), pages 509-531, August.
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    Cited by:

    1. Floro Ernesto Caroleo & Francesco Pastore, 2018. "Overeducation at a Glance. Determinants and Wage Effects of the Educational Mismatch Based on AlmaLaurea Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 999-1032, June.
    2. Alfano, Vincenzo & D'Uva, Marcella & De Simone, Elina & Gaeta, Giuseppe Lucio, 2019. "Should I stay or should I go? Migration and job-skills mismatch among Italian doctoral recipients," GLO Discussion Paper Series 340, Global Labor Organization (GLO).
    3. Pastore, Francesco, 2020. "The quasi-market of employment services in Italy," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1248-1269.
    4. Alfano, Vincenzo & Cicatiello, Lorenzo & Gaeta, Giuseppe Lucio & Pinto, Mauro, 2019. "The gender wage gap among PhD holders: an empirical examination based on Italian data," GLO Discussion Paper Series 393, Global Labor Organization (GLO).
    5. Gaeta, Giuseppe Lucio & Lubrano Lavadera, Giuseppe & Pastore, Francesco, 2018. "Overeducation wage penalty among Ph.D. holders. An unconditional quantile regression analysis on Italian data," GLO Discussion Paper Series 180, Global Labor Organization (GLO).
    6. Si-Jeoung Kim & Sang Ok Choi, 2018. "The Effects of Job Mismatch on Pay, Job Satisfaction, and Performance," Journal of Open Innovation: Technology, Market, and Complexity, MDPI, Open Access Journal, vol. 4(4), pages 1-13, October.
    7. Pastore, Francesco, 2018. "New Education Models for the Workforce of the Future," IZA Policy Papers 143, Institute of Labor Economics (IZA).
    8. Pastore, Francesco, 2018. "New Education Models for the Future of Work Force," GLO Discussion Paper Series 267, Global Labor Organization (GLO).

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    More about this item

    Keywords

    job-education mismatch; overeducation; overskilling; job satisfaction; wages; Ph.D. holders;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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