Returns to overeducation: A longitudinal analysis of the U.S. labor market

Tsai, Yuping

doi:10.1016/j.econedurev.2010.01.001

Cited by 101 publications

(85 citation statements)

References 18 publications

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“…In contrast, the statistical (in this case, the mean-based) measure operates on the basis of 20 The effects on earnings have more nuances and controversies. For instance, the standard result is that the wages of the over-(under-)educated are lower (higher) than for the well-matched at the same education level, but higher (lower) than for the well-matched in the same job (Korpi and Tåhlin 2009;Rubb 2003;Verhaest and Omey 2012), although lack of the difference in the effect magnitude and significance was also reported (Tsai 2010). There is some evidence that the overeducated have higher wage growth than the undereducated (Rubb 2006), but this finding is again not universal (Groeneveld and Hartog 2004;Korpi and Tåhlin 2009). years, and not levels, of education.…”

Section: Conclusion and Discussionmentioning

confidence: 92%

Imbalanced Job Polarization and Skills Mismatch in Europe

Sparreboom

Tarvid

2016

J Labour Market Res

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This paper considers the education of the labour force based on an analysis of trends in and the relationships between job polarization and skills mismatch. Both job polarization and skills mismatch have become topics of increasing interest, but relationships between the two have been relatively neglected in the literature. We argue that the relationship between polarization and skills mismatch is an empirical matter, which we analyse at both the macroeconomic and microeconomic level in European countries. A novel job polarization index (JPI) is proposed to measure imbalanced job polarization. It takes into account not only the change in the share of medium-level jobs, as is typical for measuring pure polarization, but also the imbalance between the change in high-level and low-level jobs. Skills mismatch at macrolevel is measured by a skills mismatch index (SMI), while traditional measures of undereducation and overeducation are used at the microeconomic level. At the macroeconomic level, we estimate a system of two equations, one for each of the country-level variables gauging polarization and mismatch, respectively. Imbalanced job polarization measured Electronic supplementary material The online version of this article (doi:10.1007/s12651-016-0196-y) contains supplementary material, which is available to authorized users.Responsibility for opinions expressed in this paper rests solely with the authors and does not constitute an endorsement by the ILO. by the JPI negatively affects skills mismatch at the macroeconomic level (SMI), but there is no significant reverse effect. Thereafter we consider the microeconomic level and study the determinants of mismatch using multi-level mixed effects logistic models. The effect of imbalanced job polarization on individual-level mismatch was arguably favourable for individuals in non-crisis time, decreasing overeducation risk although also increasing the chances of undereducation, both gauged using the normative measure, but unfavourable during the global financial crisis of 2008-2009 and the following two years.

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Section: Conclusion and Discussionmentioning

confidence: 92%

Imbalanced Job Polarization and Skills Mismatch in Europe

Sparreboom

Tarvid

2016

J Labour Market Res

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“…Recent studies controlling for the skill-heterogeneity between equally educated individuals produced mixed results concerning the causal interpretation of the wage penalty for overqualification. In some studies the negative wage effect of overqualification vanishes once skill-heterogeneity is accounted for (Bauer 2002;Tsai 2010), while other studies find robust wage penalties (Kleibrink 2015;Korpi and Tåhlin 2009). Since previous findings suggest that overqualification is detrimental at the macro and the micro level, understanding the causes for the occurrence of mismatches is highly relevant from a policy perspective.…”

Section: Introductionmentioning

confidence: 99%

“…Further studies also indicate that overqualification comes along with significant wage penalties for the subgroup of graduates (Chevalier 2003;Diem and Wolter 2014). As discussed by Tsai (2010) and others, negative wage effects might partly arise from a selection of less able individuals into overqualification because individuals holding the same qualification might differ in (innate) ability. In this case, overqualification would not represent an underutilisation of available skills.…”

Section: Introductionmentioning

confidence: 99%

Overqualification of graduates: assessing the role of family background

Erdsiek

2016

J Labour Market Res

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Overqualification signals a mismatch between jobs' educational requirements and workers' qualifications implying potential productivity losses at the macro and the micro level. This study explores how the family background of German graduates affects the probability to hold a job that does not require tertiary education, i.e. to be overqualified. Potential pathways of the family background effects are discussed and proxy variables for the mediating factors ability and skills, study characteristics, social capital, financial capital, and aspiration are incorporated into the empirical analysis. Graduates from high status families are found to be less likely to be overqualified. The unconditional social overqualification gap amounts to 7.4 percentage points. Blinder-Oaxaca decompositions of the overqualification gap show that differences in ability and skills, study characteristics, and social capital are important mediators of the family background effects.

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“…One approach involves the consideration of panel data sets in order to control for all unobserved individual fixed effects (Bauer, 2002;Frenette, 2004;Korpi and Tåhlin, 2009;Tsai, 2010). They find that the wage penalty associated with being overeducated falls dramatically and even disappears when it is estimated by fixed effects, suggesting that (part of) the effect of educational mismatch is caused by unobserved individual ability.…”

Section: Literature Reviewmentioning

confidence: 99%