Labour market mismatch among UK graduates: An analysis using REFLEX data

There is much disagreement in the literature over the extent to which graduates are mismatched in the labour market and the reasons for this. In this paper we utilise the Flexible Professional in the Knowledge Society (REFLEX) data set to cast light on these issues, based on data for UK graduates. We find substantial pay penalties for overeducation for both sexes and for overskilling in the case of men only. When both education and skill mismatch variables are included together in the model only overskilling reduces job satisfaction consistently for both sexes. Using job attributes data it appears that the lower wages of the overqualified may in part simply represent a compensating wage differential for positive job attributes, while for men at least there are real costs to being overskilled.     

The determinants of school district salary incentives: An empirical analysis of,where and why

Most public school districts in the United States use a salary schedule to determine compensation for teachers within the district. However, some school districts have implemented incentive pay schemes that allow flexibility at the school or even individual teacher level. These compensation schemes in some ways may more closely approximate a competitive labor market. This study examines the factors that influence a district's decision to offer incentive pay using districts from the 1999 to 2000 Schools and Staffing Survey. The results suggest that school districts that face barriers to recruitment or retention and districts that face competition from non-sectarian private schools are more likely to offer incentive pay.     

University rank and bachelor's labour market positions in China

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 university attended, has no effect on earnings.     

Higher Education and the starting wages of graduates in China

In order to test two competitive theories, human capital theory and screening hypothesis, this article investigates the effects of minor, class rank and matched job on the starting wages of graduates using data sources from a nation-wide survey of university graduates in China undertaken in 2003 by the Graduate School of Education, Peking University. The empirical results show that minor, class rank, and matched job do not have significantly positive impacts on the starting wages of graduates in China. We conclude therefore that the present role of higher education is more likely to be informative than productive.     

Overskilling dynamics and education pathways

This paper uses panel data and econometric methods to estimate the incidence and the dynamic properties of overskilling among employed individuals. The paper begins by asking whether there is extensive overskilling in the labour market, and whether overskilling differs by education pathway. The answer to both questions is yes. The paper continues by asking whether overskilling is a self-perpetuating labour market state (state dependence), and whether state dependence differs by education pathway. Overskilled workers with a higher degree show the highest state dependence, while workers with vocational education show none. Workers with no post-school qualifications are somewhere between these two groups. The finding that higher degree graduates suffer the greatest overskilling state dependence, combined with the well-established finding that they also suffer the highest overskilling wage penalty, suggests that the cost of mismatch among this grouping are greater relative to vocationally qualified workers.     

Education–occupation mismatch: Is there an income penalty?

This paper adds to the sparse literature on the consequences of education–occupation mismatches. It examines the income penalty for field of education–occupation mismatches for men and women with higher education degrees in Sweden and reveals that the penalty for such mismatches is large for both men and women. For mismatched men the income penalty is about twice as large as that found for US men, whereas for women the penalty is of about the same size as for US women. Controlling for cognitive ability further establishes that the income penalty is not caused by a sorting by ability, at least for Swedish men. The income penalty for men decreases with work experience, which is an indication that education-specific skills and work experience are substitutes to some extent.     

Economic returns to speaking ‘standard Mandarin’ among migrants in China's urban labour market

This article uses data from the China Urban Labour Survey administered across 12 cities in 2005 to estimate the economic returns to speaking standard Mandarin among internal migrants in China's urban labour market. The article builds on studies that estimate the economic returns to international immigrants of being fluent in the major language of the destination country and studies that estimate the economic returns to proficiency in the national language among groups of people who speak a minority language. Importantly, we control for potential endogeneity bias in the estimates of the effect of language fluency on earnings. We find that for migrants as a whole, there are considerable economic returns to speaking standard Mandarin. We also find gender differences. While the coefficient on fluency in standard Mandarin is statistically significant and large for females, the coefficient on fluency is statistically insignificant for males. One possible explanation for this finding is that female migrant workers are engaged more in occupations which have greater contact with urban locals and hence the return to investment in language skills is higher.     

Where to attend? Estimating the effects of beginning college at a two-year institution

Two-year colleges are an important part of the higher education system in the United States but there are concerns as to how attendance at these institutions affects educational attainment and labor market outcomes. This paper uses data from a nationally representative survey to examine the impact of students beginning their college career at a two-year college instead of a four-year college. Treatment effects are estimated using both standard regression techniques as well as propensity score matching. As these estimates may be contaminated because of selection on unobservable characteristics this paper will also employ a number of sensitivity analyses to consider the potential bias. The results show large negative impacts on both educational attainment and labor market outcomes for men and women who begin at a two-year college, even for those students who expect to complete a bachelor's degree. The evidence from the sensitivity analyses suggest that to eliminate these large effects there would need to be substantial, and arguably implausible, selection on unobservable characteristics.     

Formal education,mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators

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 structural educational mismatches can occur after fast transition periods. Our results are robust for various methodologies, and more importantly regarding departures from the exogeneity assumptions inherent in the matching estimators used in our analysis.     

Does the choice of reference levels of education matter in the ORU earnings equation?

This paper examines whether the results of the earnings equation developed in the over-education/required education/under-education (ORU) literature are sensitive to whether the usual or reference levels of education are measured using the Realized Matches or Worker Self-Assessment methods. The analyses are conducted for all male native-born and immigrant workers in the US, by level of skill, and by occupation. While point estimates differ, particularly when earnings equations are estimated for the smaller samples of sub-groups of the workforce, the general findings are robust to this measurement issue. Thus, the answers provided to the typical research questions in the ORU literature on the productivity of schooling are independent of the measure of the usual or reference level of education used in the analyses.     

Three measures of returns to education: An illustration for the case of Spain

In this article, in a context of wage equations with sample selection, we propose a novel interpretation of the partial effects linked to education as additional measures of returns to education that complement the traditional one, which is directly obtained from the estimation of the wage offer equation. Using European Household Panel data for Spain these partial effects were calculated. The results show that there are incentives in Spain for investing in education not only because it means an increase in wages but also because it raises the probability of obtaining any wage at all.     

Math skills and labor-market outcomes: Evidence from a resume-based field experiment

We examine the link between math skills and labor-market outcomes using a resume-based field experiment. Specifically, we send fictitious resumes in response to online job postings, randomly assigning some resumes to indicate stronger math skills, and measure employer responses. The resumes that are randomly assigned to indicate stronger math skills receive more interest from employers than the comparison resumes. Our findings add to the body of evidence showing that stronger math skills positively affect labor-market outcomes.     

The over-education of UK immigrants and minority ethnic groups: Evidence from the Labour Force Survey

The paper explores the incidence of over and under education and the effect on earnings for immigrants and natives who hold UK qualifications, drawn from the Quarterly Labour Force Survey 1993–2003. The paper also compares earnings penalties associated with over and under education across immigrant and minority ethnic groups for men and women. The results show that compared to Whites, Black African, Other Non-White and Indian men are more likely to be over-educated, whilst for women it is Indian and Pakistani/Bangladeshi's who are more likely to be over-educated. Estimating earnings equations shows significantly large over-education penalties for South Asian immigrant and native men, as well as White immigrant men, Black women and White UK born women. However, there are large returns to occupational skills for some minority ethnic and immigrant groups, over and above the returns to qualifications. It is suggested that these groups may therefore find it easier to find a suitable job for their UK education level if higher or further education programmes for immigrants were combined with occupational specific training.     

It's easier to pick a good teacher than to train one: Familiar and new results on the correlates of teacher effectiveness

Neither holding a college major in education nor acquiring a master's degree is correlated with elementary and middle school teaching effectiveness, regardless of the university at which the degree was earned. Teachers generally do become more effective with a few years of teaching experience, but we also find evidence that teachers may become less effective with experience, particularly later in their careers. These and other findings with respect to the correlates of teacher effectiveness are obtained from estimations using value-added models that control for student characteristics as well as school and (where appropriate teacher) fixed effects in order to measure teacher effectiveness in reading and math for Florida students in fourth through eighth grades for eight school years, 2001-2002 through 2008-2009.     

Migration,remittances and educational outcomes: The case of Haiti

This paper empirically investigates how migration and the receipt of remittances affect educational outcomes in Haiti. Based on a theoretical approach it tries to disentangle the effects of both phenomena that have mostly been jointly modeled in previous literature. The results suggest that remittances play an important role for poor households in alleviating budget constraints. Household wealth, captured via an asset index, is found to have a significant impact on education as well, supporting the idea that budget constraints play a crucial role in schooling decisions in Haiti.     

Returning to school for higher returns

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 percentage points in the estimated return to an additional year of schooling. The estimated marginal rate of return generally rises in the former education level, and reaches the maximum at 15 years of the former level (therefore 16 years of education after reinvestment), where an additional year of investment is associated with a rise in real hourly rate of pay by approximately 20%. Evidence also shows that, while the level of individuals’ risk tolerance affects significantly the probability of returning to school, correcting for sample selectivity makes little difference in the results. Findings in the current paper survive a variety of robustness tests. The current cohort-based evidence is more helpful than existing evidence from cross-sectional data to individuals making schooling decisions.     

Management by results: Student evaluation of faculty teaching and the mis-measurement of performance

Using data on 4 years of courses at American University, regression results show that actual grades have a significant, positive effect on student evaluations of teaching (SETs), controlling for expected grade and fixed effects for both faculty and courses, and for possible endogeneity. Implications are that the SET is a faulty measure of teaching quality and grades a faulty signal of future job performance. Students, faculty, and provost appear to be engaged in an individually rational but socially destructive game of grade inflation centered on the link between SETs and grades. When performance is hard to measure, pay-for-performance, embodied by the link between SETs and faculty pay, may have unintended adverse consequences.     

The role of educational choice in occupational gender segregation: Evidence from Trinidad and Tobago

We analyse the role of educational choice on the degree of occupational segregation in Trinidad and Tobago during a period in which educational policies intent on equating gender opportunities in education were implemented. To this end we utilize waves of the Trinidad and Tobago labour force survey over the period 1991–2004. Our results show that while educational segregation has fallen substantially over our sample period, this has not translated into less occupational segregation. This suggests that the educational policy has not been sufficient to combat occupational segregation. However, results at a more disaggregated level show that experiences have been heterogeneous across educational and occupational groups.     

Bullying,education and earnings: Evidence from the National Child Development Study

We explore the effect of bullying at school on the educational attainment of a sample of individuals drawn from the British National Child Development Study (NCDS). Our empirical findings suggest that school bullying has an adverse effect on human capital accumulation both at and beyond school. Moreover; the impact of bullying on educational attainment at age 16 is found to be similar in magnitude to class size effects. Furthermore, in contrast to class size effects, the adverse influence of bullying on educational attainment remains during adulthood. In addition, being bullied at school influences wages received during adulthood as well as indirectly influencing wages via educational attainment.