Much research has been made in recent years on the effect of over and under education on earnings. In this paper, I examine the validity of the assumption that the return to over (under) education is independent of the level of education. I use data from the PIAAC survey to estimate the return to education. The findings show that while this…

Data show that educated workers earn higher wages and are unemployed less often. Some researchers believe that education improves a worker's productivity (or "human capital"), making them more desirable on the job market, while others believe that it improves a worker's network (or "social capital"), giving them more…