Overeducation and its effects on wages: a closer look at the Spanish regions

Laura Hernández and Lorenzo Serrano Martinez
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Laura Hernández: Ivie

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2012, issue 24, 59-90

Abstract: This paper uses data from the 2004 to 2009 Living Conditions Survey (LCS) to analyze the wage gap between the adjusted and the overqualified employees in the Spanish regions using standard Mincer equations, quantile regression and the Oaxaca-Blinder decomposition. The results indicate that in Spain there is a 28% difference between the gross hourly wage between the overqualified and well-matched employees, of which 25 percentage points correspond to the discrimination effect and only three percentage points correspond to the characteristics of the individuals and the firms they work in. These results show that the effects of overeducation on the regional economies are genuine and substantial and present a considerable heterogeneity.

Keywords: Overeducation; education mismatch; returns to education; quantile regression; regional labour markets (search for similar items in EconPapers)
JEL-codes: J24 J31 R23 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0004

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