Over-education: What influence does the workplace have?

Clive Belfield

Economics of Education Review, 2010, vol. 29, issue 2, 236-245

Abstract: The wage and job satisfaction impacts for over-educated workers have been well-documented; yet little attention has been paid to the consequences for firms. In this paper we examine over-education from the perspective of the workplace. Using linked employer-employee data for the United Kingdom, we derive the standard worker-level penalties on wages and job satisfaction. We then show how over-education rates across workplaces adversely influence workplace pay and workplace labor relations. For individual workers who may be at-risk of over-education, we also distinguish between workforce composition effects and workplace labor practices, such as hiring. The effect of over-education on job satisfaction is particularly strong and its effects are evident at the workplace level. Our results suggest that investigations of over-education at the level of the firm are a promising area of inquiry.

Keywords: Over-education; Job; satisfaction (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:29:y:2010:i:2:p:236-245

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