The wage effects of overeducation across overall wage distribution on university graduates: incidence, heterogeneity and comparison

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongye Sun ◽  
Giseung Kim

PurposeThis study aims to investigate the extent to which overeducation imposes wage effects on university graduates, taking into account the individual heterogeneity due to skills and innate ability.Design/methodology/approachUsing Graduates Occupation and Mobility Survey (GOMS) 2019 and Korea Dictionary of Occupations (KDOT) 2019, the overeducated and adequately educated graduates are differentiated by the job analysis (JA) measure. To unveil the masked results, the unconditional quantile regression (UQR) accompanying skills and field of study mismatches is adopted to explore the wage effects of overeducation across the overall wage distribution.FindingsEmpirical evidence shows that the incidence of overeducation is high; however, overeducated graduates only suffer a 6.5% wage loss relative to their adequately matched peers. The findings indicate that regardless of being derived from either overskilled or field of study mismatch, genuine overeducation impose a higher wage penalty at all percentiles relative to the apparent overeducation. Meanwhile, high-ability men suffer lower-wage penalties than their low-ability peers, whereas the inverted “U” pattern is exhibited for women. The theoretical hypotheses differ depending on the estimated results by gender.Research limitations/implicationsEach measure of educational mismatch has been criticized for its insurmountable shortcoming. The recent graduates are likely to overstate the job requires of skills.Originality/valueThis paper contributes to the insufficient evidence on the multiple aspects of wage effects of overeducation by providing new and rigorous examinations and by focusing on the country experiencing rapid economic growth, industrial upgrading and educational expansion.

2017 ◽  
Vol 44 (12) ◽  
pp. 1778-1795 ◽  
Author(s):  
Swati Sharma ◽  
Prateek Sharma

Purpose The purpose of this paper is to examine the incidence and determinants of educational mismatch in the Indian labour market. It also attempts to measure the wage effects of educational mismatch, and other individual and work-related characteristics. Design/methodology/approach Educational mismatch is modelled using multiple Mincerian equations. Wage effects are measured using the novel identification strategy of Lewbel (2012), which constructs internal instruments to obviate potential endogeneity problems. Findings The authors find that the returns to over-education are positive and significant, while the returns to under-education are negative and significant. However, over-educated would earn less than the workers who have the same educational level, but who are engaged in occupations for which they are adequately educated. Originality/value This study is one of the earliest attempts to identify the determinants of educational mismatch in the Indian labour market. Additionally, it measures the effect of educational mismatch on labour market earnings, as well as marginal wage effects of each surplus (or deficit) year of education. Methodological improvements ensure that the results are robust to the sample selection bias, as well as the endogeneity bias.


2016 ◽  
Vol 37 (3) ◽  
pp. 536-555 ◽  
Author(s):  
Marco Pecoraro

Purpose – The purpose of this paper is to propose an improved concept of educational mismatch that combines a statistical measure of over- and undereducation with the worker’s self-assessment of skill utilization. The novelty of this measurement approach consists in identifying the vertical and horizontal nature of skills mismatch, that is, a mismatch in which skills are either over/underutilized or not utilized. Design/methodology/approach – Cross-sectional data from the Swiss Household Panel survey for the years 1999 and 2004 are used to determine the true extent of educational mismatch among workers. Moroever, different versions of the Duncan and Hoffman wage equation are estimated depending on whether basic or alternative measures of educational mismatch are included. Findings – The empirical analyses provide the following results: first, at least two-third of the statistically defined overeducated workers perceive their skills as adequate for the job they hold and are then apparently overeducated; second, overeducated workers whose skills are not related to the job do not receive any payoff to years of surplus education; and third, apparently overeducated workers have similar wage returns compared to others with the same schooling level but who are statistically matched. All in all, these findings confirm that most of those overeducated according to the statistical measure have unobserved skills that allow them to work in a job for which they are well-matched. Originality/value – The paper indicates the need to consider both vertical and horizontal skill mismatches when measuring educational mismatch in the labour market. In that way, it is possible to account for worker heterogeneity in skills whose omission may generate biased estimates of the incidence and wage effects of over- and undereducation.


2016 ◽  
Vol 37 (2) ◽  
pp. 372-392 ◽  
Author(s):  
Philipp Grunau

Purpose – Many contributions to the educational mismatch literature address the productivity effects of both excess and deficit educational attainments for workers at the individual level. Due to the limited transferability of their results to establishment-level performance, especially when allowing for the possibility of spillover effects from mismatched workers to their well-matched colleagues, from an employer’s point of view, it is highly important to know the net effect of educationally mismatched employees on productivity at the establishment level. The paper aims to discuss these issues. Design/methodology/approach – This paper analyses the impact of overeducated and undereducated workers among an establishment’s workforce on its productivity, providing first representative evidence for Germany. Using linked employer-employee data from Germany, the author estimates dynamic panel production functions using a system GMM estimator. Findings – The author finds that undereducated workers among an establishment’s workforce impair its (establishment-level) productivity, implying that an establishment’s HR management should avoid the recruitment of undereducated workers, at least if they follow a short-term personnel policy. The effect for overeducated employees is also negative, albeit small and insignificant. Originality/value – The consideration of the phenomena of over and undereducation from the employer’s point of view provides further insight into the consequences of educational mismatch.


2017 ◽  
Vol 38 (3) ◽  
pp. 449-469 ◽  
Author(s):  
Hipolito Simon ◽  
Esteban Sanroma ◽  
Raul Ramos

Purpose The purpose of this paper is to examine wage differences between part- and full-time workers distinguishing by gender by using a large Spanish matched employer-employee data set and an econometric decomposition that permits to decompose wage differences by quantiles of the wage distribution. Design/methodology/approach The research is based on cross-section matched employer-employee microdata from a large representative survey (the Encuesta de Estructura Salarial) which is carried out with a harmonised methodology common to all European Union member countries and that has been designed specifically to provide reliable evidence about characteristics of the wage distribution such us wage differentials associated with the type of working time. From a methodological point of view, the econometric decomposition technique proposed recently by Fortin et al. (2011) to decompose wage differences between part-time and full-time workers by quantiles of the wage distribution is applied. This methodology has the advantage over similar techniques that provides a detailed decomposition of wage differentials and has not been used before to examine the wage impact of part-time jobs. Findings The results show that the significant raw wage gap that part-time workers experience in Spain differs substantially along the wage distribution. In the case of part-time females, the wage disadvantage is mostly explained by their relative endowments of characteristics (and particularly by their lower endowments of human capital and their segregation into low-wage sectors) but a significant wage penalty still persists, increasing along the wage distribution. In the case of males the wage disadvantage is only found in the lower part of the distribution and it is due both to their worst endowments of characteristics and a significant wage penalty. Research limitations/implications The evidence for Spain shows that the part-time work tends to affect differently to the wages of males and females, with a higher part-time penalty for males, as predicted by the “flexibility stigma” hypothesis, and penalising low-qualified men in the lower part of the wage distribution and high-qualified women in the upper part of the distribution the most. Originality/value The analysis contributes to the literature by examining wage differences along the wage distribution for both genders using econometric decomposition methods, an aspect that to the authors’ knowledge has been examined only scarcely in the international literature with non-conclusive evidence and has not been examined in previous studies for the Spanish case. In this vein, Spain is a particularly interesting analysis case from an international perspective of the wage consequences of part-time jobs, given that in contrast with most other advanced countries a majority of part-time employment in this country is involuntary and this phenomenon is especially affecting disadvantaged groups.


2015 ◽  
Vol 36 (6) ◽  
pp. 874-894 ◽  
Author(s):  
Holger Lengfeld ◽  
Clemens Ohlert

Purpose – Up to date, it remains an unresolved issue how firms shape inequality in interaction with mechanisms of stratification at the individual and occupational-level. Accordingly, the authors ask whether workers of different occupational classes are affected to different degrees by between-firm wage inequality. In light of the recent rise of overall wage inequality, answers to this question can contribute to a better understanding of the role firms play in this development. The authors argue and empirically test that whether workers are able to benefit from firms’ internal or external strategies for flexibility depends on resources available at the individual and occupational level. The paper aims to discuss these issues. Design/methodology/approach – Matched employer-employee data from official German labour market statistics are used to estimate firm-specific wage components, which are then regressed on structural characteristics of firms. Findings – Between-firm wage effects of internal labour markets are largest among unskilled workers and strongly pronounced among qualified manual workers. Effects are clearly smaller among classes of qualified and high-qualified non-manual workers but have risen sharply for the latter class from 2005 to 2010. Social implications – The most disadvantaged workers in the labour market are also most contingent upon employers’ increasingly heterogeneous policies of recruitment and remuneration. Originality/value – This paper combines insights from sociological and economic labour market research in order to formulate and test the new hypothesis that between-firm wage effects of internal labour markets are larger for unskilled than for qualified workers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanh-Tam Nguyen-Huu

Purpose This paper aims to investigate the wage gap between temporary and permanent workers in Pakistan and Cambodia. Design/methodology/approach Quantile regression estimator is likely to be the most relevant to the sample. Findings The estimates indicate the presence of a temporary employment wage penalty in Pakistan and contrarily a wage premium in Cambodia. Moreover, quantile regression estimates show that wage differentials could greatly vary across the wage distribution. The wage gap is wider at the bottom of the wage distribution in Pakistan, suggesting a sticky floor effect that the penalty of being in temporary jobs could be more severe for disadvantaged workers. By contrast, a glass ceilings effect is found in Cambodia, indicating that the wage premium is small at the bottom and becomes high at the top of the pay ladder. Originality/value Despite the rise of temporary jobs in the past several decades, the empirical evidence on wage differentials between temporary and permanent workers is extremely limited in developing Asian countries. This paper is the first research work that systematically examines the temporary-permanent wage gap in selected Asian countries, based on their National Labor Force Survey data.


2011 ◽  
Vol 56 (1) ◽  
pp. 148-153 ◽  
Author(s):  
Marisa H. Miceli ◽  
Stella M. Bernardo ◽  
T. S. Neil Ku ◽  
Carla Walraven ◽  
Samuel A. Lee

ABSTRACTInfections and thromboses are the most common complications associated with central venous catheters. Suggested strategies for prevention and management of these complications include the use of heparin-coated catheters, heparin locks, and antimicrobial lock therapy. However, the effects of heparin onCandida albicansbiofilms and planktonic cells have not been previously studied. Therefore, we sought to determine thein vitroeffect of a heparin sodium preparation (HP) on biofilms and planktonic cells ofC. albicans. Because HP contains two preservatives, methyl paraben (MP) and propyl paraben (PP), these compounds and heparin sodium without preservatives (Pure-H) were also tested individually. The metabolic activity of the mature biofilm after treatment was assessed using XTT [2,3-bis-(2-methoxy-4-nitro-5-sulfophenyl)-2H-tetrazolium-5-carboxanilide] reduction and microscopy. Pure-H, MP, and PP caused up to 75, 85, and 60% reductions of metabolic activity of the mature preformedC. albicansbiofilms, respectively. Maximal efficacy against the mature biofilm was observed with HP (up to 90%) compared to the individual compounds (P< 0.0001). Pure-H, MP, and PP each inhibitedC. albicansbiofilm formation up to 90%. A complete inhibition of biofilm formation was observed with HP at 5,000 U/ml and higher. When tested against planktonic cells, each compound inhibited growth in a dose-dependent manner. These data indicated that HP, MP, PP, and Pure-H havein vitroantifungal activity againstC. albicansmature biofilms, formation of biofilms, and planktonic cells. Investigation of high-dose heparin-based strategies (e.g., heparin locks) in combination with traditional antifungal agents for the treatment and/or prevention ofC. albicansbiofilms is warranted.


2017 ◽  
Vol 31 (2) ◽  
pp. 253-268 ◽  
Author(s):  
Sophie Soklaridis ◽  
Ayelet Kuper ◽  
Cynthia R. Whitehead ◽  
Genevieve Ferguson ◽  
Valerie H. Taylor ◽  
...  

Purpose The purpose of this paper is to examine the experiences of gender bias among women hospital CEOs and explore to what these female leaders attribute their success within a male-dominated hospital executive leadership milieu. Design/methodology/approach This qualitative study involved 12 women hospital CEOs from across Ontario, Canada. Purposeful sampling techniques and in-depth qualitative interview methods were used to facilitate discussion around experiences of gender and leadership. Findings Responses fell into two groups: the first group represented the statement “Gender inequality is alive and well”. The second group reflected the statement “Gender inequity is not significant, did not happen to me, and things are better now”. This group contained a sub-group with no consciousness of systemic discrimination and that claimed having no gendered experiences in their leadership journey. The first group described gender issues in various contexts, from the individual to the systemic. The second group was ambivalent about gender as a factor impacting leadership trajectories. Originality/value Representations of women’s leadership have become detached from feminism, with major consequences for women. This study reveals how difficult it is for some women CEOs to identify gender bias. The subtle everyday norms and practices within the workplace make it difficult to name and explain gender bias explicitly and may explain the challenges in understanding how it might affect a woman’s career path.


2015 ◽  
Vol 19 (3) ◽  
pp. 433-455 ◽  
Author(s):  
Christina Ling-hsing Chang ◽  
Tung-Ching Lin

Purpose – The purpose of the study is to focus on the enhancement of knowledge management (KM) performance and the relationship between organizational culture and KM process intention of individuals because of the diversity of organizational cultures (which include results-oriented, tightly controlled, job-oriented, closed system and professional-oriented cultures). Knowledge is a primary resource in organizations. If firms are able to effectively manage their knowledge resources, then a wide range of benefits can be reaped such as improved corporate efficiency, effectiveness, innovation and customer service. Design/methodology/approach – The survey methodology, which has the ability to enhance generalization of results (Dooley, 2001), was used to collect the data utilized in the testing of the research hypotheses. Findings – Results- and job-oriented cultures have positive effects on employee intention in the KM process (creation, storage, transfer and application), whereas a tightly controlled culture has negative effects. Research limitations/implications – However, it would have been better to use a longitudinal study to collect useful long-term data to understand how the KM process would be influenced when organizational culture dimensions are changed through/by management. This is the first limitation of this study. According to Mason and Pauleen (2003), KM culture is a powerful predictor of individual knowledge-sharing behavior, which is not included in this study. Thus, this is the second limitation of this paper. Moreover, national culture could be an important issue in the KM process (Jacks et al., 2012), which is the third limitation of this paper for not comprising it. Practical implications – In researchers’ point of view, results- and job-oriented cultures have positive effects, whereas a tightly controlled culture has a negative effect on the KM process intention of the individual. These findings provide evidences that challenge the perspective of Kayworth and Leidner (2003) on this issue. As for practitioners, management has a direction to modify their organizational culture to improve the performance of KM process. Social implications – Both behavioral and value perspectives of the organizational cultural dimensions (results-oriented, tightly control, job-oriented, sociability, solidarity, need for achievement and democracy) should be examined to ascertain their effects firstly on KM culture and then on the KM process intention of the individual. It is hoped that the current study will spawn future investigations that lead to the development of an integrated model which includes organizational culture, KM culture and the KM process intention of the individual. Originality/value – The results-oriented, loosely controlled and job-oriented cultures will improve the effectiveness of the KM process and will also increase employees’ satisfaction and willingness to stay with the organization.


2020 ◽  
Vol 11 (3) ◽  
pp. 447-460
Author(s):  
Nan Hua

Purpose This paper aims to examine the impacts of IT capabilities on hotel competitiveness. Design/methodology/approach This study adapts and extends Hua et al. (2015) and O’Neill et al. (2008) by incorporating the specific measures of IT expenditures as proxies for the relevant IT capabilities to explore the impacts of IT capabilities on hotel competitiveness. Findings This study finds that expenditures on IT Labor, IT Systems and IT Websites exert different impacts on hotel competitiveness. In addition, IT capabilities exert both contemporary and lagged effects on hotel competitiveness. Originality/value This study is the first that uses financial data to capture direct measures of individual IT capabilities and tests the individual impacts of IT capabilities on hotel competitiveness from both contemporaneous and lagged perspectives. It uses a large same store sample of hotels in the USA from 2011 to 2017; as a result, the study results can be reasonably representative of the hotel population in the USA.


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