Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics

V. Jacobs (), Francois Rycx and Mélanie Volral
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V. Jacobs: Université Libre de Bruxelles

De Economist, 2022, vol. 170, issue 4, No 3, 459-501

Abstract: Abstract This paper analyses the wage effects of educational mismatch by workers’ origin using a sizeable, detailed matched employer–employee dataset for Belgium. Relying on a fine-grained approach to measuring educational mismatch, the results show that over-educated workers, regardless of their origin, suffer a wage penalty compared to their well-matched former classmates. However, the magnitude of this wage penalty is found to vary considerably depending on workers’ origin. In addition, the estimates show that origin-based differences in over-education wage penalties significantly depend on both demographics (workers’ region of birth, education, gender and tenure) and employer characteristics (firm size and collective bargaining). To our knowledge, the role played by these different moderating variables has been either little or not explored in this context before.

Keywords: Immigrants; Educational mismatch; Wage gap; Linked employer–employee data; Belgium (search for similar items in EconPapers)
JEL-codes: I24 I26 J15 J24 J31 (search for similar items in EconPapers)
Date: 2022
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Working Paper: Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics (2021)
Working Paper: Wage Effects of Educational Mismatch According to Workers' Origin: The Role of Demographics and Firm Characteristics (2021)
Working Paper: Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics (2021)
Working Paper: Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics (2021)
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DOI: 10.1007/s10645-022-09413-9

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