Examines why German firms hire overeducated employees in low-skill jobs and pay them more than correctly educated ones. Finds that overeducated employees are more productive, enjoy better health, participate more in on-the-job training, and have longer firm tenure than their correctly educated colleagues. (Contains 28 references.) (PKP)

Investigates whether structural changes in the U.S. labor market affected the rewards and penalties associated with having too much or too little schooling for a job. Applies U.S. results to Germany's more structured ambience. In all cases, productivity and wages were affected by workers' education levels. (Contains 34 references.) (MLH)