Wage Effects of Overeducation: Evidence from Poland

• Autorzy: Paulina Broniatowska
• Języki publikacji: EN

Abstrakty

EN

The educational expansion in many advanced economies in the past few decades has triggered a debate on overeducation. The aim of the study is to provide an empirical evaluation of the wage effects of overeducation in different occupational groups. We also analyse whether these effects differ between genders. In order to achieve this, we use individual data from the Structure of Wages and Salaries by Occupations database of firms with 10 or more employees in Poland. We use data from the 2006-2014 waves of the survey. We calculate the impact of overeducation on wages using a Mincer-type wage regression model. We show that on average workers are rewarded for being overeducated, but the size of wage effects of overeducation differs among particular occupational groups. We show also that the choice of the method of measurement of overeducation affects the results. (original abstract)

Słowa kluczowe

PL

Wykształcenie; Zróżnicowanie płac; Równanie Mincera

EN

People's education; Wage differential; Mincer equation

• Czasopismo: Central European Journal of Economic Modelling and Econometrics (CEJEME)
• Rocznik: 2021
• Tom: 13
• Numer: nr 1
• Strony: 25-53

Twórcy

autor

Paulina Broniatowska

• University of Warsaw

Bibliografia

• [1] Alba-Ramirez A., (1993), Mismatch in the Spanish labour market: Overeducation?, Journal of Human Resources 28, 259-278.
• [2] Allen J., van der Velden R., (2001), Educational Mismatches Versus Skill Mismatches: Effects on Wages, Job satisfaction and On-the-Job Search, Oxford Economic Papers 53(3), 434-452.
• [3] Attanasio O. P., Kaufmann K., (2017), Education choices and returns on the labor and marriage markets: Evidence from data on subjective expectations, Journal of Economic Behavior & Organization 140(C), 35-55.
• [4] Baran J., (2016), A side effect of a university boom: rising incidence of overeducation among tertiary-educated workers in Poland, University of Warsaw Faculty of Economic Sciences Working Papers 22/2016 (213).
• [5] Battu H., Belfield C. R., Sloane P., (2000), How Well Can We Measure Graduate Over Education and Its Effects?, National Institute Economic Review 171(1), 82-93.
• [6] Bauer T., (2002), Educational mismatch and wages: a panel analysis, Economics of Education Review 21, 221-229.
• [7] Becker G. S., (1964), Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education, University of Chicago Press, Chicago.
• [8] Boll Ch., Leppin J., Rossen A., Wolf A., (2016), Overeducation - New Evidence for 25 European Countries, Research Paper no. 173.
• [9] Caroleo F. E., Pastore F., (2013), Overeducation at a Glance: Determinants and Wage Effects of the Educational Mismatch, Looking at the AlmaLaurea Data, IZA Discussion Papers 7788, Institute of Labor Economics (IZA).
• [10] Chevalier A., (2000), Graduate Over-Education in the UK, Centre for the Economics of Education Discussion Paper 07.
• [11] Chevalier A., Lindley J., (2009), Over-education and the Skills of UK Graduates, Journal of the Riyal Statistical Society 172(2), 307-337.
• [12] Chiappori P., Iyigun M., Weiss Y., (2009), Inverstment in Schooling and the Marriage Market, American Economic Review 99(5), 1689-1713.
• [13] Chłoń-Domińczak A., Żurawski A., (2017), Measuring Skills Mismatches Revisited - Introducing Sectoral Approach, IBS Working Paper 03/2017.
• [14] Daly M. C., Buchel F., Duncan G. J., (2000), Premiums and Penalties for Surplus and Deficit Education: Evidence from the United States and Germany, Economics of Education Review 19, 169-178.
• [15] Di Pietro G., Urwin P., (2006), Education and skills mismatch in the Italian graduate labour market, Applied Economics 38(1), 79-93.
• [16] Dolton P., Vignoles A., (2000), The incidence and effects of mismatch in the UK graduate labour market, Economics of Education Review 19, 179-198.
• [17] Duncan G., Hoffman S. D., (1981), The Incidence and Wage Effects of Overeducation, Economics of Education Review 1(1), 75-86.
• [18] Freeman R. B., (1976), The overeducated American, Academic Pass.
• [19] Goraus K., Tyrowicz J., (2014), Gender wage gap in Poland - can it be explained by differences in observable characteristics?, Ekonomia 36, 125-148.
• [20] Green F., McIntosh S., (2007), Is There a Genuine Under-utilisation of Skills Amongst the Overqualified?, Applied Economics 39 (4), 427-439.
• [21] Groot W., (1996), The incidence of, and returns to overeducation in the UK, Applied Economics 28(10), 1345-1350.
• [22] Groot W., Maaseen van den Brink H., (2000), Overeducation in the labor market: a meta-analysis, Economics of Education Review 19(2), 149-158.
• [23] Hartog J., Oosterbeek H., (1988), Education, allocation and earnings in the Netherlands: Overschooling?, Economics of Education Review 7, 185-194.
• [24] Hartog J., (2000), Overeducation and earnings: where are we, where should we go?, Economics of Education Review 19(2), 131-147.
• [25] Kiker B. F., Santos M. C., Mendes De Oliveira M., (1997), Overeducation and Undereducation: Evidence for Portugal, Economics of Education Review 16(2), 111-125.
• [26] Kucel A., Vilalta-Bufi M., (2012), Graduate Labour Mismatch in Poland, Polish Sociological Review 3(179), 413-429.
• [27] Leuven E., Oosterbeek H., (2011), Overeducation and Mismatch in the Labour Market, IZA Discussion Paper, no. 5523.
• [28] Li I., Simonson R., Malvin M., (2014), Over-education and Employment Mismatch: Wage Penalties for College Degrees in Business, The Journal of Education for Business 90(3), 119-125.
• [29] Majchrowska A., Strawiński P., (2018), Impact of minimum wage increase on gener wage gap: Case of Poland, Economic Modelling 70, 174-185.
• [30] Mavromaras K., McGuinness S., O'Leary N., Sloane P., Wei Z., (2013), Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates, Economic Record89, 382-395.
• [31] McGuiness S., Wooden M., (2009), Overskilling, Job Insecurity and Career Mobility, Industrial Relations: A Journal of Economy and Society 48(2), 265- 286.
• [32] McGuinness S., Sloane P., (2011), Labour market mismatch among UK graduates: An analysis using REFLEX data, Economics of Education Review 30(1), 130-145.
• [33] McGuinness S., Bergin A., Whelan A., (2017), Overeducation in Europe: Trends, Convergence and Drivers, IZA Discussion Paper No. 10678.
• [34] McGuiness S., (2006), Overeducation in the Labour Market, Journal of Economic Surveys 20(3), 387-418.
• [35] Mincer J., (1974), Schooling, Experience and Earnings, National Bureau of Economic Research, Cambridge.
• [36] Mysikova M., (2016), Has Personal Earnings Inequality Become Polarized? The Czech Republic in a Comparative Perspective, Journal of Income Distribution 24(3-4), 3-24.
• [37] OECD, (2019), OECD Skills Strategy Poland: Assessment and Recommendations, OECD Skills Studies, OECD Publishing, Paris, https://doi.org/10.1787/b377fbcc-en.
• [38] Ortiz L., Kucel A., (2008), Do Fields of Study Matter for Over-education? The Cases of Spain and Germany, International Journal of Comparative Sociology 49, 305-327, DOI: 10.1177/0020715208093079.
• [39] Robst J., (2008), Overeducation and College Major: Expanding the Definition of Mismatch Between Schooling and Jobs, The Manchester School 76(4), 349-368.
• [40] Rossen A., Boll Ch., Wolf A., (2019), Patterns of Overeducation in Europe: The Role of Field of Study, IZA Journal of Labor Policy 9(1).
• [41] Rubb S., (2003), Overeducation in the Labor Market: A Comment and ReAnalysis of a Meta-analysis, Economics of Education Review 22(6), 621-629.
• [42] Sánchez-Sánchez N., McGuinness S., (2013), Decomposing the impacts of overeducation and overskilling on earnings and job satisfaction: an analysis using REFLEX data, Education Economics, in press, http://dx.doi.org/10.1080/ 09645292.2013.846297.
• [43] Sattinger M., (1993), Assignment Models of the Distribution of Earnings, Journal of Economic Literature31, 831-880.
• [44] Sloane P., (2003), Much Ado about Nothing? What Does the Over-education Literature Really Tell Us?, International Conference on Over-education in Europe: What Do We Know?.
• [45] Sloane P. J., (2014), Overeducation, Skill Mismatches, and Labor Market Outcomes for College Graduates, IZA World of Labor 88, 1-10.
• [46] Strawiński P., Broniatowska P., Majchrowska A., (2016), Returns to vocational education evidence from Poland, WNE Working Papers No. 16/2016 (207).
• [47] Strawiński P., (2015), Krzyżowe porównanie danych o wynagrodzeniach z polskich badań przekrojowych, Bank i Kredyt 46 (5), 433-462.
• [48] Vahey S., (2000), The great Canadian training robbery: evidence on the returns to educational mismatch, Economics of Education Review 19, 219-227.
• [49] Verdugo R., Verdugo N., (1989), The Impact of Surplus Schooling on Earnings: Some Additional Findings, Economics of Education Review 22(4), 690-695.
• [50] Verhaest D., Omey E., (2006), The impact of overeducation and its measurement, Social Indicators Research, 77(3), 419-448.
• [51] Wincenciak L., (2016), Educational mismatches and earnings in Poland: are graduates penalised for being overeducated?, Ekonomia 46, 145-167.

Identyfikatory

DOI

10.24425/cejeme.2021.136457