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Field of study, qualification mismatch, and wages: Does sorting matter?

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  • Berlingieri, Francesco
  • Zierahn, Ulrich

Abstract

Graduates from Science, Technology, Engineering, and Mathematics (STEM) are usually found to have higher wages and a lower risk of overqualification. However, it is unclear whether we can interpret the effect of STEM subjects on overqualification and wages in a causal way, since individuals choosing these subjects might differ systematically in unobserved characteristics, such as ability. Using data on German male graduates we show that unobserved heterogeneity indeed matters for differences in the risk of overqualification and wages when STEM graduates are compared to the Business & Law group, while it plays only a minor role for the difference between STEM graduates and the Social Sciences & Humanities group.

Suggested Citation

  • Berlingieri, Francesco & Zierahn, Ulrich, 2014. "Field of study, qualification mismatch, and wages: Does sorting matter?," ZEW Discussion Papers 14-076, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:14076
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    Cited by:

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    2. Boll, Christina & Leppin, Julian Sebstian & Rossen, Anja & Wolf, André, 2016. "Overeducation - new evidence for 25 European countries," HWWI Research Papers 173, Hamburg Institute of International Economics (HWWI).
    3. Rossen Anja & Boll Christina & Wolf André, 2019. "Patterns of Overeducation in Europe: The Role of Field of Study," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 9(1), pages 1-48, June.
    4. Biewen, Martin & Schwerter, Jakob, 2019. "Does More Math in High School Increase the Share of Female STEM Workers? Evidence from a Curriculum Reform," IZA Discussion Papers 12236, Institute of Labor Economics (IZA).
    5. Ana Santiago Vela, 2021. "Same Degree, Same Opportunities? Educational and Social Background Effects on Overeducation in Germany," Social Sciences, MDPI, vol. 10(8), pages 1-32, August.

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    More about this item

    Keywords

    qualification mismatch; wages; sorting; graduates; field of study;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of 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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