Formal Education, Mismatch and Wages after Transition: Assessing the Impact of Unobserved Heterogeneity Using Matching Estimators

Ana Lamo and Julian Messina

No 4982, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the incidence and consequences of the mismatch between formal education and the educational requirements of jobs in Estonia during the years 1997-2003. We find large wage penalties associated with the phenomenon of educational mismatch. Moreover, the incidence and wage penalty of mismatches increase with age. This suggests that structural educational mismatches can occur after fast transition periods. Our results are robust for various methodologies, and more importantly regarding departures from the exogeneity assumptions inherent in the matching estimators used in our analysis.

Keywords: matching estimators; education mismatch; wage determination (search for similar items in EconPapers)
JEL-codes: J0 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2010-05
New Economics Papers: this item is included in nep-lab and nep-tra
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Citations: View citations in EconPapers (23)

Published - published in: Economics of Education Review, 2010, 29 (6), 1089-1099

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Related works:
Journal Article: Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators (2010)
Working Paper: Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators (2010)
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