Consequences of Overeducation among Career Starters in Germany: A Trap for the Vocationally Trained as well as for University Graduates?

2019 ◽  
Vol 36 (3) ◽  
pp. 413-428
Author(s):  
Paul Schmelzer ◽  
Thorsten Schneider
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Panel Study ◽  
University Graduates ◽  
Capital Theory ◽  
Bridge Function ◽  
Search Models ◽  
Percentage Points ◽  
Educational Groups ◽  
Using Data

Abstract Research on the consequences of starting in overeducation often focuses on either secondary or tertiary graduates. We focus on both within one country, Germany. While matching and search models imply the improvement of initial overeducation, human capital theory and stigma associated with overeducation predict entrapment. The strongly skill- and occupation-based labour market for the vocationally trained in Germany mitigates the bridge function of overeducation. As the less standardized tertiary system creates more uncertainties, initial overeducation should be more prevalent and should serve as a bridge to better positions. However, depreciation of human capital and the stigma associated with overeducation oppose the bridge function of overeducation here, too. Using data from the German National Educational Panel Study (NEPS), we compare labour market positions of career starters in overeducation with those not in overeducation in subsequent years using propensity score matching. In the fifth year after labour market entrance, the differences in overeducation between initially overeducated and non-overeducated individuals amounts to 38 percentage points for graduates and 28 for vocationally trained persons. In addition, vocationally trained persons starting in overeducation face higher unemployment risks later on. Our findings challenge the assumption of a bridge function in both educational groups.

scholarly journals Human Capital Disparities and Earnings Inequality in The Portuguese Private Labour Market

2021 ◽  
Author(s):  
Derick R. C. Almeida ◽  
João A. S. Andrade ◽  
Adelaide Duarte ◽  
Marta Simões
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Tertiary Education ◽  
Earnings Inequality ◽  
Kuznets Curve ◽  
Positive Trend ◽  
Returns To Schooling ◽  
Education Inequality ◽  
Using Data

AbstractThis paper examines human capital inequality and how it relates to earnings inequality in Portugal using data from Quadros de Pessoal for the period 1986–2017. The objective is threefold: (i) show how the distribution of human capital has evolved over time; (ii) investigate the association between human capital inequality and earnings inequality; and (iii) analyse the role of returns to schooling, together with human capital inequality, in the explanation of earnings inequality. Our findings suggest that human capital inequality, computed based on the distribution of average years of schooling of employees working in the Portuguese private labour market, records a positive trend until 2007 and decreases from this year onwards, suggesting the existence of a Kuznets curve of education relating educational attainment levels and education inequality. Based on the decomposition of a Generalized Entropy index (Theil N) for earnings inequality, we observe that inequality in the distribution of human capital plays an important role in the explanation of earnings inequality, although this role has become less important over the last decade. Using Mincerian earnings regressions to estimate the returns to schooling together with the Blinder-Oaxaca decomposition of real hourly earnings we confirm that there are two important forces associated with the observed decrease in earnings inequality: a reduction in education inequality and compressed returns to schooling, mainly in tertiary education.

scholarly journals The value of university internships

2021 ◽  
Vol 40 ◽  
pp. 127-148
Author(s):  
Sandra Fachelli ◽  
Eric Fernández-Toboso
Keyword(s):  
Logistic Regression ◽  
University Students ◽  
Labour Market ◽  
Binary Logistic Regression ◽  
Regression Technique ◽  
Job Placement ◽  
Bivariate Analysis ◽  
University Graduates ◽  
Using Data

Universities place particular importance on their internship projects for university students. The purpose of this study is to identify if the internships have an impact on the students’ entry to the labour market. The methodology used is based on the bivariate analysis and the multiple binary logistic regression technique, using data from the 2014 Survey on the Labour Insertion of University Graduates (EILU), carried out by the INE. The sample used comprises 30,379 graduates and in the internships section, 21,622 university graduates. The results obtained confi rm that internships are a tool for job placement.

Ethnic Differences in Labour Market Outcomes—The Role of Language-Based Discrimination

2019 ◽  
Author(s):  
Miriam Schmaus
Keyword(s):  
Labour Market ◽  
Ethnic Groups ◽  
Language Proficiency ◽  
Ethnic Differences ◽  
Language Skills ◽  
Panel Study ◽  
Market Outcomes ◽  
Labour Market Outcomes ◽  
Taste Discrimination ◽  
Using Data

Abstract Host country language proficiency has been shown to account for ethnic differences in labour market outcomes. Prior studies generally assume that language skills represent a form of human capital, affecting employees’ productivity. However, language proficiency may also be associated with discrimination. Lower language proficiency may elicit distaste for certain ethnic groups, as it is a prominent reminder of the respective origin. When this reminder vanishes as language skills rise, group-specific distaste should also reduce. Employers may thus not only value language skills in terms of productivity but also factor in less group-specific distaste when evaluating immigrant jobseekers with high-language skills. Moreover, if employers lack information on competences that are hard to observe, high-language proficiency may prevent the application of adverse ethnic beliefs. Using data from the National Educational Panel Study (NEPS), I examine whether language skills affect crucial indicators of labour market success differently for groups that vary with respect to the level of distaste associated with them. I also investigate whether this effect is conditional on the amount of information available to employers. Findings indicate group-specific returns to higher-language proficiency, irrespective of the available information. This might suggest that, in addition to affecting employees’ productivity, language proficiency may also be associated with taste discrimination for certain ethnic groups.

Job Mobility and Earnings: An Internal Labour Market Analysis

1988 ◽  
Vol 30 (1) ◽  
pp. 100-117 ◽  
Author(s):  
John Creedy ◽  
Keith Whitfield
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Job Mobility ◽  
Human Capital Theory ◽  
Market Analysis ◽  
Future Research ◽  
Market Theory ◽  
Capital Theory ◽  
Earnings Distribution ◽  
Market Approach

The analysis of job mobility and earnings has been dominated by human capital theory. This approach has been subject to considerable criticism in recent years, particularly about the manner in which it conceptualizes the processes that take place between the start and end of a job. An alternative is the internal labour market approach, which focuses on the very processes which are so problematic for human capital theory. Information from three specially designed surveys of professional scientists in Australia and Britain suggests that the processes that are central to internal labour market theory are crucial to generating the distribution of earnings. While the evidence presented is not necessarily incompatible with human capital theory, it does suggest that future research on the earnings distribution could usefully involve the development of the internal labour market approach.

scholarly journals ‘Rusty, invisible and threatening’: ageing, capital and employability

2016 ◽  
Vol 31 (3) ◽  
pp. 465-482 ◽  
Author(s):  
Dina Bowman ◽  
Michael McGann ◽  
Helen Kimberley ◽  
Simon Biggs
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Older Workers ◽  
Human Capital Theory ◽  
Job Skills ◽  
Narrative Interviews ◽  
Capital Theory ◽  
Gender And Age

Levels of mature-age unemployment and under-employment are increasing in Australia, with older jobseekers spending longer unemployed than younger jobseekers. This article focuses on two key explanations of the difficulties confronting older jobseekers: human capital theory, which focuses on the obsolescence of older workers’ job skills, and ageism in employment. Drawing upon narrative interviews with older Australians, it critically engages with both these understandings. Using a Bourdieusian analysis, it shows how ageing intersects with the deployment of different forms of capital that are valued within particular labour market fields to shape older workers’ ‘employability’. By examining how class, gender and age intersect to structure experiences of marginalization, it questions conventional analyses that see older workers as discriminated against simply because they are older.

scholarly journals The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success

2019 ◽  
Author(s):  
Gerhard Krug ◽  
Katrin Drasch ◽  
Monika Jungbauer-Gans
Keyword(s):  
Labour Market ◽  
Job Search ◽  
Social Stigma ◽  
Panel Study ◽  
Well Being ◽  
Stigma Consciousness ◽  
Search Effort ◽  
The Social ◽  
Using Data ◽  
The Unemployed

Studies show that the unemployed face serious disadvantages in the labour market and that the social stigma of unemployment is one explanation. In this paper, we focus on the unemployed’s expectations of being stigmatized (stigma consciousness) and the consequences of such negative expectations on job search attitudes and behaviour. Using data from the panel study “Labour Market and Social Security” (PASS), we find that the unemployed with high stigma consciousness suffer from reduced well-being and health. Regarding job search, the stigmatized unemployedare more likely to expect that their chances of re-employment are low, but in contrast, they are more likely to place a high value on becoming re-employed. Instead of becoming discouraged and passive, we find that stigmatized unemployedindividuals increase their job search effort compared to other unemployed individuals. However, despite their higher job search effort, the stigma-conscious unemployed do not have better re-employment chances.

scholarly journals Training Participation and the Role of Reciprocal Attitudes

2020 ◽  
Vol 66 (1) ◽  
pp. 33-59
Author(s):  
Arjan Non
Keyword(s):  
Human Capital ◽  
Labour Market ◽  
Jel Codes ◽  
Work Related ◽  
Training Courses ◽  
Using Data

Abstract Using data from the German Socio-Economic Panel, I examine the relation between workers’ reciprocal attitudes, as measured in 2005 and 2010, and participation in work-related training courses in 2007 and 2013, respectively. Theory predicts that employers find it more profitable to invest in human capital of workers who have positively reciprocal attitudes, because they are more likely to return their employer’s kindness with higher effort and/or loyalty. The findings are mixed, depending on the survey year. I find that positively reciprocal workers are more likely to participate in employer-financed training in 2007, in particular when training is general. Also, consistent with theoretical expectations, I do not find a relation between workers’ reciprocal attitudes and participation in training that is not financed by the employer. However, workers’ reciprocal attitudes are not related to training participation in 2013. A possible explanation is that employers use training to induce reciprocal feelings in a slack labour market only. (JEL codes: M53 and D91).

scholarly journals The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success

2019 ◽  
Author(s):  
Gerhard Krug ◽  
Katrin Drasch ◽  
Monika Jungbauer-Gans
Keyword(s):  
Labour Market ◽  
Job Search ◽  
Social Stigma ◽  
Panel Study ◽  
Well Being ◽  
Stigma Consciousness ◽  
Search Effort ◽  
The Social ◽  
Using Data ◽  
The Unemployed

Studies show that the unemployed face serious disadvantages in the labour market and that the social stigma of unemployment is one explanation. In this paper, we focus on the unemployed’s expectations of being stigmatized (stigma consciousness) and the consequences of such negative expectations on job search attitudes and behaviour. Using data from the panel study “Labour Market and Social Security” (PASS), we find that the unemployed with high stigma consciousness suffer from reduced well-being and health. Regarding job search, the stigmatized unemployed are more likely to expect that their chances of re-employment are low, but in contrast, they are more likely to place a high value on becoming re-employed. Instead of becoming discouraged and passive, we find that stigmatized unemployed individuals increase their job search effort compared to other unemployed individuals. However, despite their higher job search effort, the stigma-conscious unemployed do not have better re-employment chances.

Hesitating at the Altar

2017 ◽  
Vol 46 (5) ◽  
pp. 743-763 ◽  
Author(s):  
Nick Frazier ◽  
Margaret McKeehan
Keyword(s):  
Marital Status ◽  
Panel Study ◽  
Income Dynamics ◽  
Percentage Points ◽  
Marriage Tax ◽  
The Us ◽  
Using Data ◽  
Tax Filing

This article provides evidence that the US tax code’s dependence on marital status continues to generate an implicit marriage tax and distort marital decisions. By looking at the timing of marriage rather than the decision to marry, we capture a specific distortion while allowing for heterogeneity in other costs of marriage. Using data on couples from the Panel Study on Income Dynamics between 1986 and 2011, we find that a 1 percent rise in the size of the marriage tax relative to a couple’s income increases the probability of delay by 1.2 percentage points. We further demonstrate the robustness of this result across a variety of alternative specifications and assumptions regarding tax-filing behavior.

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