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Educational mismatches and earnings: are the graduates more penalized for being overeducated?

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  • Leszek Wincenciak

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

This paper estimates an extended Mincer wage regression model with Heckman correction for non-random selection using LFS data for Poland for the second quarter of 2013. Significant wage penalties are found to overeducation status as well as positive wage premia for being undereducated, which confirms findings that are found in the literature for other countries. Using Duncan and Hoffman (1981) approach, we find significant positive returns to years of overschooling and negative for underschooling. Young participants of the labour market (graduates) are less penalized for being overeducated, which suggests their overeducation is not necessarily a manifestation of lower ability.

Suggested Citation

  • Leszek Wincenciak, 2016. "Educational mismatches and earnings: are the graduates more penalized for being overeducated?," Working Papers 2016-28, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2016-28
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    File URL: http://www.wne.uw.edu.pl/index.php/download_file/3160/
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    References listed on IDEAS

    as
    1. Richard R. Verdugo & Naomi Turner Verdugo, 1989. "The Impact of Surplus Schooling on Earnings: Some Additional Findings," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 629-643.
    2. Tsai, Yuping, 2010. "Returns to overeducation: A longitudinal analysis of the U.S. labor market," Economics of Education Review, Elsevier, vol. 29(4), pages 606-617, August.
    3. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
    4. N/A, 2010. "Books for Review," Work, Employment & Society, British Sociological Association, vol. 24(3), pages 612-614, September.
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    Cited by:

    1. Paulina Broniatowska, 2021. "Wage Effects of Overeducation: Evidence from Poland," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 13(1), pages 25-53, March.
    2. Agnieszka Chlon-Dominczak & Andrzej Zurawski, 2017. "Measuring skills mismatches revisited – introducing sectoral approach," IBS Working Papers 03/2017, Instytut Badan Strukturalnych.
    3. Jacek Liwiński & Francesco Pastore, 2021. "Are School-Provided Skills Useful at Work? Results of the Wiles Test," Research in Higher Education, Springer;Association for Institutional Research, vol. 62(1), pages 72-97, February.
    4. Marta Palczyńska, 2021. "Overeducation and wages: the role of cognitive skills and personality traits," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 21(1), pages 85-111.

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    More about this item

    Keywords

    educational mismatch; overeducation; undereducation; wage premium; Poland;
    All these keywords.

    JEL classification:

    • 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
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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