This paper proposes a theoretical framework where "within graduates" wage inequality is related to overeducation/educational mismatch in the labor market. We show that wage inequality may arise because of inefficient self-selection into education in the presence of ability-complementary technological progress and asymmetric information…

Using a survey of a cohort of UK graduates, linked to administrative data on higher education participation, this paper investigates the labour market attainment of recent graduates by subject of study. We document a large heterogeneity in the mean wages of graduates from different subjects and a considerably larger one within subject with…

This paper examines the effect of teacher relative wages and teacher wage dispersion on high school graduates' preferences for teaching majors in College. This approximation to teacher quality is appropriate in a country like Venezuela as opposed to the US since the rigidity of the tertiary school system significantly limits mobility between…

Using German linked employer-employee data, this paper investigates the short-term impact of on-the-job training on wages. The applied estimation approach was first introduced by Leuven and Oosterbeek (2008). Wages of employees who intended to participate in training but did not do so because of a random event are compared to wages of training…

On the basis of those respondents in the National Longitudinal Survey of Youth (NLSY) who change jobs with an intervening period of education reinvestment, the conventional assumption of linearity of log wages in years of schooling is strongly rejected: a typical reinvestment for the 1980 through 1993 period is associated with a rise of about 3.5…

This paper studies the incidence and consequences of the mismatch between formal education and the educational requirements of jobs in Estonia during the years 1997-2003. We find large wage penalties associated with the phenomenon of educational mismatch. Moreover, the incidence and wage penalty of mismatches increase with age. This suggests that…

We study the effects of the large expansion in British educational attainment that took place for cohorts born between 1970 and 1975. Using the Quarterly Labour Force Survey, we find that the expansion caused men to increase education by about a year on average and gain about 8% higher wages; women obtained a slightly greater increase in education…

The share of female teachers in the U.S. with an MA more than doubled between 1970 and 2000. This increase is puzzling, as it is much larger than that of other college-educated women, and it occurred over a period of declining teacher aptitude. I estimate the contribution of changes in teacher demographic characteristics, increases in the returns…

We report evidence that university reputation affects wages of bachelors in China. An unconditional difference between a top-100 university and a top 400-500 university of 23% is increased to some 28% by adding controls. Within the top-100 there is no differentiation in pay-off. Self-rated quality of high school, while affecting quality of…

Aggregate unemployment may affect individual returns to education through qualification-specific responses in participation and wage bargaining. This paper shows that an increase in regional unemployment by 1% decreases returns to education by 0.005 percentage points. This implies that higher skilled employees are better sheltered from labour…

A proportion of employees are overqualified for their work. This generates a wage premium relative to the job but a penalty relative to the qualification, and is therefore, a puzzle for human capital theory. A part of this derives from the use of measures of time spent in education for the calculation of overqualification. Analysing data from four…

While there is an extensive literature on intergenerational transmission of economic outcomes (education, health and income for example), many of the pathways through which these outcomes are transmitted are not as well understood. We address this deficit by analysing the relationship between socio-economic status and child outcomes in university,…

This study examines the role of sheepskin effects in explaining white-black earnings differences. The study finds significant differences in sheepskin effects between white men and black men, with white men receiving higher rewards for lower level signals (degrees of a college education or less) and black men receiving higher rewards for higher…

Previous research has established the returns to academic ability in the general labor market, and this paper investigates such returns in the teacher labor market. Using a nationally representative sample of public school teachers, I find that teachers who graduate from the most selective undergraduate institutions have salaries that are between…

In a recent paper, Garcia-Mainar and Montuenga-Gomez [Garcia-Mainar, I. & Montuenga-Gomez, V. M. (2005). Education returns of wage earners and self-employed workers: Portugal vs. Spain. "Economics of Education Review, 24"(2), 161-170] apply the generalized IV model of Hausman and Taylor to estimate education returns of wage earners…