scholarly journals OVERQUALIFICATION, SKILL MISMATCHES AND WAGES IN PRIVATE SECTOR EMPLOYMENT IN EUROPE

2014 ◽  
Vol 20 (3) ◽  
pp. 457-483 ◽  
Author(s):  
Santiago Budría ◽  
Ana Moro-Egido

This paper uses a sample of private sector male workers from the European Community Household Panel to examine the wage effects of educational mismatches across segments of the earnings distribution in 12 countries. We consider two types of mismatch, overqualification and skills mismatches. By differentiating between quantiles, we discriminate between groups of workers with different unobservable earnings conditions. We find that the detrimental effects of skill mismatches on wages are larger than those of overqualification in most segments of the earnings distribution. Moreover, we find that the pay penalty of educational mismatch tends to be higher among workers with higher unconditional wages. This finding suggests that the mismatch phenomenon entails wage losses over and above those attributable to unobservable earnings determinants, including ability and skills possessed by workers.

2005 ◽  
Vol 21 (5) ◽  
pp. 489-512 ◽  
Author(s):  
Andreas Behr ◽  
Egon Bellgardt ◽  
Ulrich Rendtel

2012 ◽  
Vol 57 (192) ◽  
pp. 7-24 ◽  
Author(s):  
Jelena Lausev

The paper explores the effect of large-scale privatization of public sector activities on public-private sector pay differential, for groups of workers according to educational qualification on average and across the pay distribution in Serbia, from 2004 until 2008. The paper finds that both unskilled and skilled men and women in the public sector saw significant improvements in their financial position relative to their private sector counterparts with the progress of the economic transition. The results showed that the size of the public sector pay premium declines both with higher educational level and higher percentile of earnings distribution. This indicates, between and within groups, the inequality-reducing feature of the public sector pay determination.


2019 ◽  
Vol 18 (4) ◽  
pp. 342-361
Author(s):  
Kihong Park ◽  
Jesus Hernandez Arce

Abstract Most prior research on labor market mismatch was constrained by the unavailability of data on skill mismatch and also the absence of panel data which would provide controls for unmeasured heterogeneity. This paper makes use of the panel element of Korea Labor & Income Panel Survey (KLIPS) data and identifies the wage effects of educational mismatch and skill mismatch both separately and jointly. It clearly shows that only a small proportion of the wage effect of educational mismatch is accounted for by skill mismatch, suggesting a relatively weak relation between educational mismatch and skill mismatch. In the analysis appropriate panel methodology produces much weaker estimates of the relevant coefficients than the pooled OLS model. This result indicates that unobserved individual-specific characteristics play a substantial role in the way in which mismatch effects are determined.


2013 ◽  
Vol 89 (286) ◽  
pp. 367-381 ◽  
Author(s):  
Yekaterina Chzhen ◽  
Karen Mumford ◽  
Catia Nicodemo

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.


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