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Are educational mismatches responsible for the ‘inequality increasing effect’ of education?

Santiago Budria Rodriguez ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper asks whether educational mismatches can account for the positive association between education and wage inequality found in the data. We use two different data sources, the European Community Household Panel and the Portuguese Labour Force Survey, and consider several types of mismatch, including overqualification, underqualification and skills mismatch. We test our hypothesis using two different measurement methods, the ‘statistical’ and the ‘subjective’ approach. The results are robust to the different choices and unambiguously show that the positive effect of education on wage inequality is not due to the prevalence of educational mismatches in the labour market.

Keywords: Overeducation; returns to education; educational mismatch; within-groups wage inequality (search for similar items in EconPapers)
JEL-codes: D31 J31 (search for similar items in EconPapers)
Date: 2010-06-01
New Economics Papers: this item is included in nep-edu, nep-eur, nep-hrm and nep-lab
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Related works:
Journal Article: Are Educational Mismatches Responsible for the ‘Inequality Increasing Effect’ of Education? (2011) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23420

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