Overeducation, Wages and Promotions within the Firm

Sandra Groeneveld () and Joop Hartog
Additional contact information
Sandra Groeneveld: Erasmus University Rotterdam

No 883, IZA Discussion Papers from IZA Network @ LISER

Abstract: We analyse data from personnel records of a large firm producing energy and telecommunication and test for the effect of deviations between required and attained education of workers. Required education is measured as hiring standards set by the firm. We find the usual effects of over- and undereducation in a wage regression, thus rejecting the argument that such effects are exclusively due to firm fixed effects. Distinguishing, within the firm, between a sheltered internal labour market and an exposed external labour market, we find that at the internal labour market over- and undereducation significantly affect career development, in particular at younger ages, but that such effects are mostly absent at the firm’s external labour market.

Keywords: career mobility; wages; overeducation; education; promotions (search for similar items in EconPapers)
JEL-codes: J31 J41 M51 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2003-10
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - published in: Labour Economics, 2004, 11 (6), 701-714

Downloads: (external link)
https://docs.iza.org/dp883.pdf (application/pdf)

Related works:
Journal Article: Overeducation, wages and promotions within the firm (2004)
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:iza:izadps:dp883

Access Statistics for this paper

More papers in IZA Discussion Papers from IZA Network @ LISER Contact information at EDIRC.
Bibliographic data for series maintained by Mark Fallak ().