Educational mismatches and earnings: are the graduates more penalized for being overeducated?

Leszek Wincenciak

No 2016-28, Working Papers from Faculty of Economic Sciences, University of Warsaw

Abstract: This paper estimates an extended Mincer wage regression model with Heckman correction for non-random selection using LFS data for Poland for the second quarter of 2013. Significant wage penalties are found to overeducation status as well as positive wage premia for being undereducated, which confirms findings that are found in the literature for other countries. Using Duncan and Hoffman (1981) approach, we find significant positive returns to years of overschooling and negative for underschooling. Young participants of the labour market (graduates) are less penalized for being overeducated, which suggests their overeducation is not necessarily a manifestation of lower ability.

Keywords: educational mismatch; overeducation; undereducation; wage premium; Poland (search for similar items in EconPapers)
JEL-codes: J24 J31 J41 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2016
New Economics Papers: this item is included in nep-edu and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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http://www.wne.uw.edu.pl/index.php/download_file/3160/ First version, 2016 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:war:wpaper:2016-28

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