The effect of overskilling dynamics on wages

Kostas Mavromaras, Stephane Mahuteau, Peter Sloane, Zhang Wei

Research output: Contribution to journalArticlepeer-review

12 Citations (Scopus)

Abstract

We use a random-effects dynamic probit model to estimate the effect of overskilling dynamics on wages. We find that overskilling mismatch is common and more likely among those who have been overskilled in the past. It is also highly persistent, in a manner that is inversely related to educational level. Yet, the wages of university graduates are reduced more by past overskilling than for any other education level. A possible reason for this wage effect is that graduates tend to be in better-paid jobs and therefore there is more at stake for them if they get it wrong.

Original languageEnglish
Pages (from-to)281-303
Number of pages23
JournalEducation Economics
Volume21
Issue number3
DOIs
Publication statusPublished - Jul 2013

Keywords

  • mismatch
  • overskilling
  • panel dynamic estimation
  • wages

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