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Overeducation and wages downgrading : conditions of a spatial differentiation

Author

Listed:
  • Eric Cahuzac

    (ESR - Economie et Sociologie rurales - INRA - Institut National de la Recherche Agronomique)

  • Vanessa Di Paola

    (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)

Abstract

Most previous studies modeling overeducation has failed to take into account the impact of the local labor markets characteristics. We investigate overeducation in such a context, focusing on employment density. In this paper we restrict our analysis on a statistical approach of the overeducation phenomenon both for skill levels and wages of the early career of French people. Selective access to employment is corrected using a probit analysis with sample selection. Estimations highlight the importance of the characteristics of the labor market to avoid overeducation, more particularly : employment density, commuting time, increase in population or unemployment rate. We also emphasize a substitution (complementary) effect between unemployment and overeducation from a skill (salary) point of view.

Suggested Citation

  • Eric Cahuzac & Vanessa Di Paola, 2004. "Overeducation and wages downgrading : conditions of a spatial differentiation," Post-Print halshs-00010261, HAL.
    • Handle: RePEc:hal:journl:halshs-00010261
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00010261
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    Cited by:

    1. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers in Public Economics 145, University of Rome La Sapienza, Department of Economics and Law.

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