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The Effects of Overeducation on Wages in Trinidad and Tobago: An Unconditional Quantile Regression Analysis

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  • Doon, Roshnie

Abstract

The main aim of this study is to analyse the wage returns of Overeducated workers employed in Trinidad and Tobago. To undertake such a study, data from the Continuous Sample Survey of Population (CSSP) for the period 1991-2015 is used to estimate an initial OLS and Quantile regression version of the Mincerian Earnings equations, which is commonly used in the education mismatch literature. To observe the unconditional partial effects of small changes in wage returns of overeducated workers at the mean, the Recentred Influence Function is estimated. The results reveal that if the earnings of overeducated workers who receive low wages, was replaced with that of high wages, then this would lead to a rise, or shift in the returns of overeducated workers, if only their biographical information is considered. The inclusion of their skill and geographic location would cause their earnings to shift further. The shift in the earnings of overeducated workers, when examined across the wage distribution, would tend to favor those who were married, younger, i.e., in the 25-35 age group, who were highly skilled at their jobs. These groups of overeducated workers would experience the lowest wage penalties in comparison to their single, mature, and semi-skilled colleagues.

Suggested Citation

  • Doon, Roshnie, 2021. "The Effects of Overeducation on Wages in Trinidad and Tobago: An Unconditional Quantile Regression Analysis," GLO Discussion Paper Series 797, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:797
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    References listed on IDEAS

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    1. Donghong Xie, 2020. "Hukou System, Horizontal, Vertical, and Full Job-Education Mismatch and Wage Progression among College Floating Population in Beijing, China," Migration Letters, Migration Letters, vol. 17(5), pages 609-620, September.
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    3. Zheng, Yanqiao & Zhang, Xiaoqi & Zhu, Yu, 2021. "Overeducation, major mismatch, and return to higher education tiers: Evidence from novel data source of a major online recruitment platform in China," China Economic Review, Elsevier, vol. 66(C).
    4. Andrés J. Marchante & Bienvenido Ortega & Ricardo Pagán, 2005. "Educational Mismatch and Wages in the Hospitality Sector," Tourism Economics, , vol. 11(1), pages 103-117, March.
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    More about this item

    Keywords

    Job-Education Mismatch; Overeducation; Unconditional Quantile Regression; Trinidad and Tobago;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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