Education-Job Mismatch and Heterogeneity in the Return to Schooling: Evidence from Cameroon

Issofou Njifen () and Peter Smith
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Issofou Njifen: University of Yaounde II
Peter Smith: University of Groningen

Journal of the Knowledge Economy, 2024, vol. 15, issue 1, No 34, 860-887

Abstract: Abstract This study aims to analyze the education-job mismatch effect on the return to education in Cameroon, by using data on employment provided by the National Institute of Statistics. Based on Verdugo and Verdugo’s model estimate, we use several types of regression models to examine both the heterogeneity in returns to education derived from education-job mismatch and the choice of different types of selection model. Results show that overeducation is associated with a wage penalty while undereducation leads to a wage premium. With each year of schooling, differences in earning are significant between overeducated, undereducated, and well-matched people. They also show a substantial difference in the magnitude of coefficients with respect to the control variables for different types of selection model. This difference observed across different models implies that the estimation of returns to schooling is highly sensitive to the model’s specification. Beyond other contributions, this study highlights the need to exercise a fair degree of care in the choice of an appropriate model for analysis.

Keywords: Returns to education; Overeducation; Double selection model; Endogeneity; Earning function (search for similar items in EconPapers)
JEL-codes: I26 J24 J31 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01112-3

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