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Overeducation in the labour market: evidence from Brazil

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  • Larissa da Silva Marioni

Abstract

This paper analyses the prevalence of educational mismatch and its effects on wages in Brazil using a large employer-employee dataset. I find that half of the Brazilian labour market is mismatched, with similar proportions of over- and undereducated. Overeducated (undereducated) workers earn significantly lower (higher) than their co-workers who hold a well-matched job, and the penalty for overeducation is the same as the premium for undereducation. Moreover, the overeducation penalty is about half of the premium for going to university. Further, given the symmetry of the mismatch correcting it yields small effects on aggregate wages.

Suggested Citation

  • Larissa da Silva Marioni, 2021. "Overeducation in the labour market: evidence from Brazil," Education Economics, Taylor & Francis Journals, vol. 29(1), pages 53-72, January.
    • Handle: RePEc:taf:edecon:v:29:y:2021:i:1:p:53-72
    DOI: 10.1080/09645292.2020.1832201
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    Cited by:

    1. Mehrzad B. Baktash, 2023. "Overeducation, Performance Pay and Wages: Evidence from Germany," Research Papers in Economics 2023-08, University of Trier, Department of Economics.

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