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Education-Job Mismatch and Heterogeneity in the Return to Schooling: Evidence from Cameroon

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  • Issofou Njifen

    (University of Yaounde II)

  • Peter Smith

    (University of Groningen)

Abstract

This study aims to analyze the education-job mismatch effect on the return to education in Cameroon, by using data on employment provided by the National Institute of Statistics. Based on Verdugo and Verdugo’s model estimate, we use several types of regression models to examine both the heterogeneity in returns to education derived from education-job mismatch and the choice of different types of selection model. Results show that overeducation is associated with a wage penalty while undereducation leads to a wage premium. With each year of schooling, differences in earning are significant between overeducated, undereducated, and well-matched people. They also show a substantial difference in the magnitude of coefficients with respect to the control variables for different types of selection model. This difference observed across different models implies that the estimation of returns to schooling is highly sensitive to the model’s specification. Beyond other contributions, this study highlights the need to exercise a fair degree of care in the choice of an appropriate model for analysis.

Suggested Citation

  • Issofou Njifen & Peter Smith, 2024. "Education-Job Mismatch and Heterogeneity in the Return to Schooling: Evidence from Cameroon," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 860-887, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01112-3
    DOI: 10.1007/s13132-023-01112-3
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    More about this item

    Keywords

    Returns to education; Overeducation; Double selection model; Endogeneity; Earning function;
    All these keywords.

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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