Overeducation and wages downgrading: conditions of a spatial differentiation

Eric Cahuzac () and Vanessa Di Paola ()
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Eric Cahuzac: ESR - Economie et Sociologie rurales - INRA - Institut National de la Recherche Agronomique
Vanessa Di Paola: LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique

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Abstract: Most previous studies modeling overeducation has failed to take into account the impact of the local labor markets characteristics. We investigate overeducation in such a context, focusing on employment density. In this paper we restrict our analysis on a statistical approach of the overeducation phenomenon both for skill levels and wages of the early career of French people. Selective access to employment is corrected using a probit analysis with sample selection. Estimations highlight the importance of the characteristics of the labor market to avoid overeducation, more particularly : employment density, commuting time, increase in population or unemployment rate. We also emphasize a substitution (complementary) effect between unemployment and overeducation from a skill (salary) point of view.

Keywords: Overeducation; Local labor markets; Spatial differentiation; Sample selection (search for similar items in EconPapers)
Date: 2004-07
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00010261v1
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Published in SASE 2004 (Society for the advancement of socio-economics), 16th Annual Meeting on Socio-Economics, Washington, 8-11 juillet 2004, Jul 2004

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00010261

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