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Overeducation wage penalty among Ph.D. holders. An unconditional quantile regression analysis on Italian data

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

Abstract

The wage effect of overeducation has only recently been investigated in the case of Ph.D. holders. The existing contributions rely on OLS estimates that allow measuring the average effect of being educationally mismatched at the mean of the conditional wage distribution. This paper, instead, observes the heterogeneity of the overeducation penalty along the hourly wage distribution and according to the study field and sector of employment (academic/non-academic) of Ph.D. holders. We estimate a Recentered Influence Function. The results reveal that overeducation hits the wages of those Ph.D. holders who are employed in the academic sector and in non-R&D jobs outside of the academic sector. Instead, no penalty exists among those who carry out R&D outside the Academia. The size of the penalty is higher among those who are in the mid-top of the wage distribution and hold a Social Science and Humanities specialization.

Suggested Citation

  • 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).
  • Handle: RePEc:zbw:glodps:180
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    More about this item

    Keywords

    Job-education mismatch; Overeducation; Wages; Ph.D. holders; Unconditional quantile regression; Italy;
    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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