The Effect of Overskilling Dynamics on Wages

Kostas Mavromaras, Stephane Mahuteau (), Peter J. Sloane () and Zhang Wei ()
Additional contact information
Peter J. Sloane: Swansea University
Zhang Wei: University of Adelaide

No 6985, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use a random effects dynamic probit model to estimate the effect of overskilling dynamics on wages. We find that overskilling mismatch is common and more likely among those who have been overskilled in the past. It is also highly persistent, in a manner that is inversely related to educational level. Yet, the wages of university graduates are reduced more by past overskilling, than for any other education level. A possible reason for this wage effect is that graduates tend to be in better-paid jobs and therefore there is more at stake for them if they get it wrong.

Keywords: panel dynamic estimation; mismatch; overskilling; wages (search for similar items in EconPapers)
JEL-codes: J24 J31 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2012-11
New Economics Papers: this item is included in nep-edu, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Education Economics, 2013, 21 (3), 281-303

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Journal Article: The effect of overskilling dynamics on wages (2013)
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