Template-type: ReDif-Paper 1.0
Author-Name: Allen J.P. 
Author-Name: Velden R.K.W. van der
Author-Name: Levels M. 
Author-Name: Levels M. 
Author-workplace-name: ROA
Title: Educational mismatches and skills: New empirical tests of old hypotheses
Abstract: In this paper, we empirically explore how the often reported relationship between overeducation and wages can best be understood. Exploiting the newly published Programme for International Assessment of Adult Competencies PIAAC data OECD 2013, we are able to achieve a better estimation of the classical ORU-model Duncan and Hoffman, 1981, by controlling for heterogeneity of observable skills. Our findings suggest that 1 a considerable part of the effect of educational mismatches can be attributed to skills heterogeneity, and 2 that the extent to which skills explain educational mismatches varies by institutional contexts. These observations suggest that skills matter for explaining wage effects of education and educational mismatches, but the extent to which this is the case also depends on institutional contexts.
Keywords: Analysis of Education; Education and Economic Development; Labor Demand; Human Capital; Skills; Occupational Choice; Labor Productivity; 
Classification-JEL: I21; I25; J23; J24; .
Series:  Research Memoranda
Creation-Date: 2013
Number: 018
File-URL: http://pub.maastrichtuniversity.nl/f9c9cc83-fb69-4c8a-9f3f-ee040767af03
File-Format: application/pdf
File-Size: 762568
Handle: RePEc:unm:umaror:2013018