Modelling Education Dynamics with Cliometric Foundations

Claude Diebolt

Working Papers of BETA from Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg

Abstract: The numerous analogies in the literature on economics between monetary theory and education policy lead me to propose a new model inspired by the work of Dornbusch [1976] and transposed to a context of ‘diploma inflation’. Supposing the required job skills rigid in the short run, I show a significant over-education phenomenon and an overshooting of the wage penalties in starting jobs. After formal education has been completed, the new graduate cohorts, despite a more significant level of initial training and better salary prospects have to face, paradoxically and in comparison with the previous generations, a higher over-education extent over a long period.

Keywords: Overshooting; Over-education; Education Economics; Economic Policy, Political Economy, Macroeconomic Dynamics, Cliometrics. (search for similar items in EconPapers)
JEL-codes: D31 I20 J31 N3 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-edu and nep-gro
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Working Paper: Modelling Education Dynamics with Cliometrics Foundations (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ulp:sbbeta:2016-01

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