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The Theory of Differential Overqualification: Does it Work?

Author

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  • Büchel, Felix

    (Max Planck Institute for Human Development)

  • Battu, Harminder

    (University of Aberdeen)

Abstract

The theory of differential overqualification, developed by Robert Frank (1978), claims that married women in smaller labor markets have a higher risk of working in jobs for which they are overqualified. This stems from the problem of dual job search for couples which is much more difficult to optimize than single job search. Here, for several reasons husbands tend to first optimize their individual job search. Their wives are "tied movers" or "tied stayers" in the sense that their job search is undertaken under the condition that the job search of their husbands is optimized. This leads especially in smaller labor markets to a higher risk of a mismatch between formal qualifications and job requirements. The only specific empirical test of this theory, until now, has been performed by McGoldrick and Robst (1996). Their results, using US data, do not support the theory. Using German panel data (GSOEP), we also test the theory of differential overqualification. Unlike previous studies we control for commuting distances and our own results provide some mixed support for the differential overqualification hypothesis.

Suggested Citation

  • Büchel, Felix & Battu, Harminder, 2002. "The Theory of Differential Overqualification: Does it Work?," IZA Discussion Papers 511, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp511
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    References listed on IDEAS

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    1. Battu, H. & Seaman, P.T & Sloane, P.J., "undated". "Are Married Women Spatially Constrained? A test of gender differentials in labour market outcomes," Working Papers 98-07, Department of Economics, University of Aberdeen.
    2. Oosterbeek, Hessel, 2000. "Introduction to special issue on overschooling," Economics of Education Review, Elsevier, vol. 19(2), pages 129-130, April.
    3. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    4. McGoldrick, KimMarie & Robst, John, 1996. "Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification," American Economic Review, American Economic Association, vol. 86(2), pages 280-284, May.
    5. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-122, April.
    6. SOEP Group, 2001. "The German Socio-Economic Panel (GSOEP) after More than 15 Years: Overview," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 7-14.
    7. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-414, November.
    8. Ofek, Haim & Merrill, Yesook, 1997. "Labor Immobility and the Formation of Gender Wage Gaps in Local Markets," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 28-47, January.
    9. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 111-143, June.
    10. Frank, Robert H, 1978. "Why Women Earn Less: The Theory and Estimation of Differential Overqualification," American Economic Review, American Economic Association, vol. 68(3), pages 360-373, June.
    11. Büchel, Felix & Pollmann-Schult, Matthias, 2001. "Overeducation and Skill Endowments The Role of School Achievement and Vocational Training Quality," IZA Discussion Papers 337, Institute of Labor Economics (IZA).
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    Cited by:

    1. Aniela Wirz & Erdal Atukeren, 2004. "Overeducation in the Swiss Labour Market: Does Anything Go Wrong?," KOF Working papers 04-85, KOF Swiss Economic Institute, ETH Zurich.
    2. Pohl, Anja & Sujata, Uwe & Wesling, Mirko & Zillmann, Manja, 2012. "Geschlechterspezifische Entwicklungen am sächsischen Arbeitsmarkt : Eine Betrachtung der Jahre 2007 bis 2011," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen 201204, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Rohrbach-Schmidt, Daniela & Tiemann, Michael, 2016. "Educational (mis)match and skill utilization in Germany : assessing the role of worker and job characteristics (Qualifikatorisches (Mis)matching und die Ausnutzung von fachlichen Kenntnissen und Fähig," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 49(2), pages 99-119.
    4. Surhan Cam, 2014. "The Underemployed: Evidence From the UK Labour Force Survey for a Conditionally Gendered Top-down Model," Journal of Social Science Studies, Macrothink Institute, vol. 1(2), pages 47-65, July.
    5. Aniela Wirz, 2004. "To my wife, with love! Does within-household specialisation explain husband's better job-education-match?," KOF Working papers 04-93, KOF Swiss Economic Institute, ETH Zurich.
    6. Boll, Christina & Leppin, Julian Sebastian, 2013. "Unterwertige Beschäftigung von Akademikerinnen und Akademikern: Umfang, Ursachen, Einkommenseffekte und Beitrag zur geschlechtsspezifischen Lohnlücke," HWWI Policy Papers 75, Hamburg Institute of International Economics (HWWI).
    7. Christina Boll & Julian Sebastian Leppin, 2016. "Differential Overeducation in East and West Germany: Extending Frank's Theory on Economic Returns Changes the Picture of Disadvantaged Women," LABOUR, CEIS, vol. 30(4), pages 455-504, December.
    8. Anneleen Vandeplas & Anna Thum-Thysen, 2019. "Skills Mismatch and Productivity in the EU," European Economy - Discussion Papers 100, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    9. Rohrbach-Schmidt, Daniela & Tiemann, Michael, 2016. "Educational (mis)match and skill utilization in Germany : assessing the role of worker and job characteristics (Qualifikatorisches (Mis)matching und die Ausnutzung von fachlichen Kenntnissen und Fähig," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 49(2), pages 99-119.
    10. Rohrbach-Schmidt, Daniela & Tiemann, Michael, 2016. "Educational (mis)match and skill utilization in Germany : assessing the role of worker and job characteristics (Qualifikatorisches (Mis)matching und die Ausnutzung von fachlichen Kenntnissen und Fähig," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 49(2), pages 99-119.

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    More about this item

    Keywords

    overqualification; regional migration; marriage; gender;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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