Bureaucracy, overschooling and credentials inflation

Peter H. van der Meer
Additional contact information
Peter H. van der Meer: Groningen University

No 01A13, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)

Abstract: In this paper we investigate whether the amount and level of overschooling is higher in the private sector than in the public sector. We investigate differences in the rate of return on (over)schooling too. The idea is that within the public sector the wage and allocation process behaves more according to Thurow’s job-competition model or according to the view of the credentialists whereas in the private sector the wage and allocation process behaves more according to the neo-classical human capital model. These differences should result in different wage equations which if added up can explain the mixed results of previous research. However, we could not find support for neither of these ideas in the Dutch Labour Supply Panel Study of the Dutch Institute for Labour Studies (OSA). Contrary to our expectations employees in the private sector were more often overschooled than those in the public sector, but the rate of return on overschooling is the same. This means that none of the investments in education is wasted and also that we have no substantial proof for credentials inflation as advocated by others. The increase in the rate of return on schooling since 1985 shows that investments in education have become even more rewarding.

Date: 2001
References: Add references at CitEc
Citations:

Downloads: (external link)
http://irs.ub.rug.nl/ppn/222367822 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://irs.ub.rug.nl/ppn/222367822 [302 Found]--> https://irs.ub.rug.nl/ppn/222367822 [302 Found]--> https://www.rug.nl/research/portal/publications/pub(1d3a919e-8de9-4526-afda-e3d90ef4a4fa).html [301 Moved Permanently]--> https://research.rug.nl/en/publications/pub(1d3a919e-8de9-4526-afda-e3d90ef4a4fa).html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gro:rugsom:01a13

Access Statistics for this paper

More papers in Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management) Contact information at EDIRC.
Bibliographic data for series maintained by Hanneke Tamling ().