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Discriminating between alternative measures of overeducation

[journal article]

Verhaest, Dieter; Omey, Eddy

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Abstract Five overeducation measures are evaluated empirically on the basis of encompassing tests. The measures are based on job analysis (JA), worker-assessment of the required level to do the job (WAd), worker-assessment of the required level to get the job (WAg), the mean educational level of realized matches (RMmn), and the modal level of realized matches (RMml). Over- and undereducation are linked to wages, job satisfaction, mobility and training participation. For none of the outcome variables, the JA model is encompassed by another model. Given the risk on systematic errors, this is a sufficient condition to prefer a carefully conducted JA to any other measure. The most reliable solution is to use the JA measure as an instrument for the WAd measure.
Document language English
Publication Year 2006
Page/Pages p. 2113-2120
Journal Applied Economics, 38 (2006) 18
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)