Educational mismatches and skills: New empirical tests of old hypotheses

M. Levels, Rolf Van der Velden () and J.P. Allen
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M. Levels: Macro, International & Labour Economics
J.P. Allen: Research Centre for Educ and Labour Mark

No 62, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: In this paper, we empirically explore how the often reported relationship between overeducation and wages can best be understood. Exploiting the newly published Programme for International Assessment of Adult Competencies (PIAAC) data (OECD 2013), we are able to achieve a better estimation of the classical ORU-model (Duncan and Hoffman, 1981), by controlling for heterogeneity of observable skills. Our findings suggest that 1) a considerable part of the effect of educational mismatches can be attributed to skills heterogeneity, and 2) that the extent to which skills explain educational mismatches varies by institutional contexts. These observations suggest that skills matter for explaining wage effects of education and educational mismatches, but the extent to which this is the case also depends on institutional contexts.

Date: 2013-01-01
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (3)

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Related works:
Chapter: Educational mismatches and skills: New empirical tests of old hypotheses (2014)
Journal Article: Educational mismatches and skills: new empirical tests of old hypotheses (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2013062

DOI: 10.26481/umagsb.2013062

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