Educational mismatch, wages, and wage growth: Overeducation in Sweden, 1974-2000
250 citations recorded by the source corpus.
We examine the impact of educational mismatch on wages and wage growth in Sweden. The empirical analyses, based on cross-sectional and panel data from the Level of living surveys 1974-2000, are guided by two main hypotheses: (a) that educational mismatch reflects human capital compensation rather than real mismatch, and (b) that educational mismatch is real but dissolves with time spent in the labour market, so that its impact on wages tends toward zero over a typical worker’s career. Our findings do not support these hypotheses. First, significant differences in contemporaneous economic returns to education across match categories remain even after variations in ability are taken into account. Second, we find no evidence that the rate of wage growth is higher among overeducated workers than others. Our conclusion is that the overeducated are penalized early on by an inferior rate of return to schooling from which they do not recover.
Subfields: Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/ca14abb68b48966d101f618bbfeeb1a676698009
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Citations in the corpus
- School-to-Work Linkages, Educational Mismatches, and Labor Market Outcomes (2019, unknown): “…studies find that in a vertical mismatch—workers having higher or lower education than the level required for their current job—individuals receive a reduced reward for mismatched schooling compared with required schooling (Korpi and Tahlin 2009; McGuinness 2006; Nordin, Persson, and Rooth 2010).”
- An Analysis of Skill Mismatch Using Direct Measures of Skills (2011, unknown): “…concept of mismatch (e.g., Oosterbeek, 2000; Hartog, 2000; Dolton & Vignoles, 2000; Groot & Maasen van den Brink, 2000; Mendes de Oliveira, Santos & Kiker, 2000; Vahey, 2000; Daly, Buchel & Duncan, 2000; Sloane, 2007; Verhaest & Omey, 2006; Galasi, 2008; van der Meer, 2009; Korpi & Tåhlin, 2009).”
- “I Have a Job, But . . .”: A Review of Underemployment (2011, background): “…future career advancement and promotion opportunities, recent research finds that workers who are overeducated for their early jobs receive a wage penalty that persists throughout their careers, rather than being able to progress more quickly to suitable jobs (Korpi & Tåhlin, 2009; Rubb, 2005).”
- Overeducation and Mismatch in the Labor Market (2011, unknown): “This is illustrated by Korpi and Tahlin (2009), one of the few studies using instrumental variable methods to estimate returns to over/underschooling.”