The incidence and wage effects of overeducation

Duncan, Greg J.; Hoffman, Saul

doi:10.1016/0272-7757(81)90028-5

Cited by 560 publications

(511 citation statements)

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“…Other studies, some of which control for workers' fixed unobserved heterogeneity and/or field of education, also found that over-(under-)educated workers earn more (less) than their adequately educated peers. This implies, according to human capital theory, that over-(under-)education increases (decreases) workers' productivity (see e.g., Battu et al 1999;Dolton and Silles 2008;Duncan and Hoffman 1981;McGuinness and Sloane 2011;Sicherman 1991;Van der Meer 2006).…”

Section: Educational Mismatch and Firm Productivitymentioning

confidence: 99%

“…Although findings on the impact of educational mismatch on wages are quite consistent, existing evidence of the effect of educational mismatch on firm productivity goes in multiple, different directions (Hartog 2000;Sattinger, 2012). The first trend of research relies on human capital theory, which infers the effects of over-and under-education on productivity through their effects on wages (Battu et al 1999;Duncan and Hoffman 1981;Rumberger 1987;Mavromaras et al 2010;Sicherman 1991;Van der Meer 2006). The second trend studies the influence of educational mismatch on job satisfaction and other correlates of workers' productivity (Büchel 2002;Green and Zhu 2010;Hersch 1991;Tsang 1987;Tsang et al 1991;Omey 2006, 2009).…”

Section: Introductionmentioning

confidence: 99%

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Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

2015

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The authors provide first evidence on whether the direct relationship between educational mismatch and firm productivity varies across working environments. Using detailed Belgian linked employer-employee panel data for 1999-2010, they find the existence of a significant, positive (negative) impact of over-(under-)education on firm productivity. Moreover, their results show that the effect of over-education on productivity is stronger among firms: (i) with a higher share of high-skilled jobs, (ii) belonging to high-tech/knowledge-intensive industries, and (iii) evolving in a more uncertain economic environment. Interaction effects between under-education and working environments are less clear-cut. However, economic uncertainty is systematically found to accentuate the detrimental effect of under-education on productivity.Keywords: Educational mismatch, productivity, linked employer-employee panel data, working environments. AbstractThe authors provide first evidence on whether the direct relationship between educational mismatch and firm productivity varies across working environments. Using detailed Belgian linked employer-employee panel data for 1999-2010, they find the existence of a significant, positive (negative) impact of over-(under-)education on firm productivity. Moreover, their results show that the effect of over-education on productivity is stronger among firms: (i) with a higher share of high-skilled jobs, (ii) belonging to high-tech/knowledge-intensive industries, and (iii) evolving in a more uncertain economic environment. Interaction effects between under-education and working environments are less clear-cut. However, economic uncertainty is systematically found to accentuate the detrimental effect of under-education on productivity.

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Section: Educational Mismatch and Firm Productivitymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

2015

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“…This result might be puzzling to those who are familiar with the literature on "overschooling". Duncan and Hoffman (1981), Rumberger (1987), Hersch (1991), Hartog and Oosterbeek (1985) and other studies surveyed in Hartog (1998) all found that the rewards to surplus schooling are positive. None of those studies corrected however for fixed firm effects.…”

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confidence: 90%

Worker turnover at the firm level and crowding out of lower educated workers

Gautier

Berg

Ours

et al. 2002

European Economic Review

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In The Netherlands, as in many countries: unemployment rates of lower educated workers are higher and more cyclical than unemployment rates of higher educated workers. In this paper we test whether this is caused by the fact that more highly educated individuals occupy simple jobs in cyclical downturns. We use a unique firm-worker dataset to investigate this hypothesis. In addition, we examine to what extent workers with more years of schooling earn higher wages than their less educated colleagues at the same job level in the same firm. We find that at one of the lower job complexity levels, the difference between schooling of the inflow and the outflow increases in cyclical downturns. At the same time, workers with surplus schooling earn somewhat lower wages at this job level. For the other job complexity levels we find no evidence for crowding out.

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“…The limited research evidence that does exist tends to focus on the population at large with a cursory attention to ethnic groups. Nevertheless, the limited research on ethnic groups finds that over-education is greater for non-whites (Duncan and Hoffman, 1981;Alpin et al, 1998) and there is also some evidence to suggest that ethnic minority graduates do experience greater difficulties in accessing "graduate" jobs relative to whites (Connor et al, 1996). In any case the heterogeneous ethnic profile of the non-white population in terms of ethnic origin is not acknowledged and nor is any distinction made between ethnic minorities who are native born and those who are foreign born.…”

Section: Introductionmentioning

confidence: 99%

Over‐Education and Ethnic Minorities in Britain

Battu¹,

Sloane²

2004

The Manchester School

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Overeducation and Ethnic Minorities in BritainHarminder Battu Peter J. Sloane The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor, (2) internationalization of labor markets, (3) welfare state and labor market, (4) labor markets in transition countries, (5) the future of labor, (6) evaluation of labor market policies and projects and (7) general labor economics. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available on the IZA website (www.iza.org) or directly from the author. ABSTRACT Overeducation and Ethnic Minorities in Britain *This study examines the utilisation of education across ethnic minorities in the UK. In particular, we examine the incidence of mismatch between educational qualifications and occupational attainment, the determinants of any mismatch and the consequences for earnings and other labour market outcomes. Using a modal measure of required education across sixty occupations we find that different ethnic groups have varying levels of overeducation with the highest incidence being amongst the Indian and Africa-Asian groups.When we introduce controls we find that the African-Asians are more likely to be both over and under-educated relative to Indians (the omitted group), but this is reversed for those born in the UK. Foreign qualifications increase the likelihood of over-education for Pakistanis and Bangladeshis but reduce it for African-Asians. Language fluency increases the likelihood of mismatch. The results from our earnings regressions support previous work in relation to the returns to ov...

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The incidence and wage effects of overeducation

Cited by 560 publications

References 1 publication

Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

Worker turnover at the firm level and crowding out of lower educated workers

Over‐Education and Ethnic Minorities in Britain

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