Education, educational mismatch, and wage inequality: Evidence for Spain

Budría, Santiago; Moro‐Egido, Ana I.

doi:10.1016/j.econedurev.2006.10.005

Cited by 100 publications

(101 citation statements)

References 14 publications

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“…Barceinas et al (2000) find a similar result for the period 1990-95, and that the least educated workers have undergone the sharpest decline in their stock of human capital. Also, and consistent with the findings of San Segundo (1997), Vila and Mora (1998), Caparrós et al (2001), and Budría and Moro-Egido (2008), among others, there is a notable decrease in the rate of return to university degrees. García-Montalvo and Peiró (2009) argue that this behaviour may be explained by the strong growth in the number of graduates in the last few decades which has not been accompanied by any similar increase in the number of skilled jobs.…”

Section: Evolution Of Private Returns To Education Insupporting

confidence: 78%

“…Several authors have studied this last question in an international context (Bauer, 2002;Groot, 1993;Hartog, 2000;Kiker, Santos, & Mendes de Oliviera, 1997), with two main conclusions standing out: on the one hand, the wages earned by an undereducated worker tend to be lower than those earned by co-workers with an educational level in accordance with their job and, on the other, while an overeducated worker indeed gets higher wages, they are below the average expected given their educational level. Alba-Ramírez (1993), and more recently Budría and Moro-Egido (2008) and García-Montalvo and Peiró (2009), obtain similar results for the Spanish case. However, there have been few studies examining the evolution of returns to education in Spain and how overeducation might have affected these values over the last decade.…”

Section: Introductionsupporting

confidence: 71%

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Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995–2006)

Murillo

Rahona-López

Salinas-Jiménez

2012

Journal of Policy Modeling

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Esta es la versión de autor del artículo publicado en: This is an author produced version of a paper published in:Journal of Policy Modeling 34 (2012) This study examines the effects of educational mismatch on wages in the Spanish labour market since the mid-nineties. First we study the evolution of returns to education and then we estimate returns to education in terms of the match between the worker's schooling and the job requirements. The results indicate that returns to education have declined since the mid-nineties. One also finds that the return associated with the job's required education is greater than that corresponding to the worker's actual schooling, and that the return on an additional year of attained education is positive but less than that of an additional year of required education. From a policy perspective, the existence of educational mismatch points to inefficiencies in the allocation of the educational resources. Investment on education can positively contribute to alleviate the unemployment problem in Spain, but taken into account the existence of educational mismatch it also becomes necessary to introduce structural reforms in order to adapt the job structure to a model of production based on knowledge so that the more highly qualified workers can find a job that corresponds to their educational level.JEL classification: I20; I29; J30

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Section: Evolution Of Private Returns To Education Insupporting

confidence: 78%

Section: Introductionsupporting

confidence: 71%

Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995–2006)

Murillo

Rahona-López

Salinas-Jiménez

2012

Journal of Policy Modeling

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“…Martins and Pereira, as well as Arias et al, point out the implications of these results, that increased education may be associated with a widening of the (conditional) wage distribution, and may not always improve the prospects of low-earning workers as much as hoped by policy makers. In related studies, Budria and Pereira (2005) and Angrist, Chernozhukov and Fernandez-Val (2006) use QR techniques to disaggregate the returns to education by education level. They find that the widening returns to education over the wage distribution are driven largely by the widening returns to collegeeducated individuals.…”

Section: Introductionmentioning

confidence: 99%

“…However, there are considerable differences across countries in mean associations between training and wages. Budria and Pereira (2005) and Angrist, Chernozhukov and Fernandez-Val (2006) use QR techniques to disaggregate the returns to education by education level. They find that the widening returns to education over the wage distribution are driven largely by the widening returns to collegeeducated individuals.…”

Section: Introductionmentioning

confidence: 99%

Are there asymmetries in the effects of training on the conditional male wage distribution?

2008

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Recent studies have used quantile regression (QR) techniques to estimate the impact of education on the location, scale and shape of the conditional wage distribution. We conduct a similar investigation of the role of work-related training. We utilise both ordinary least squares and QR techniques to estimate associations between work-related training and wages for private sector men in ten European Union countries. For the majority of countries, the association between training and hourly wages varies little across the conditional wage distribution. However, there are considerable differences across countries in mean associations between training and wages. Budria and Pereira (2005) and Angrist, Chernozhukov and Fernandez-Val (2006) use QR techniques to disaggregate the returns to education by education level. They find that the widening returns to education over the wage distribution are driven largely by the widening returns to collegeeducated individuals.Our purpose in the present paper is to see if there is also an upward-sloping profile for training across the conditional wages distribution. Education and work-related training are complementary, as numerous studies attest (see Arulampalam, Booth and Bryan, 2004 and references therein). Hence we might expect to observe an upward sloping profile when we graph the training association across quantiles of the conditional wage 1 For surveys of articles estimating the mean returns to training, see Ashenfelter and Lalonde (1996) and for the mean returns to education, see Card (1999). However, it is possible that skills packages offered by firms to workers might differ across the wage distribution in ways that are unobservable to the econometrician. For example, any complementarities between unobserved ability and work-related training might result in an upward-sloping profile when we graph the training correlation across quantiles of the conditional wages distribution. Moreover, training courses offered by firms to workers are likely to vary in their degree of specificity or generality. Training that is specific and partially firm-financed will produce lower individual wage-returns than selffinanced general training. Using the harmonised ECHP data, we can measure the more formal types with our training measure and on-the-job training with our tenure measure.But we cannot hope to capture the skill-mix heterogeneity of training courses offered by firms, not least because the training indicators typically combine different training types 2 Although there has been a recent surge in the estimation of wage equations using quantile regression techniques (see Fitzenberger, et al, 2001, for some applications), to our knowledge there are no studies investigating the association between work-related training and the conditional wage distribution. 3There is an extensive literature on the evaluation of particular labour market programmes, using a variety of techniques. For example, Heckman et al. (1994) estimate the average effects of training on the treated, Hec...

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“…An example is the cliché of doctors who formerly married nurses and who are now more likely to marry other doctors (Esping-Andersen and Myles 2011). The rising wage dispersion among graduates (Lemieux 2006;Budría and Telhado 2011) might also imply that the signalling effect of tertiary education in terms of earnings and social status has declined over time.…”

Section: Introductionmentioning

confidence: 99%

Do Opposites Attract? Educational Assortative Mating and Dynamics of Wage Homogamy in Switzerland, 1992–2014

Ravazzini

Kuhn

Suter

2017

Swiss Journal of Sociology

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This paper addresses homogamy and assortative mating in Switzerland. The empirical analysis monitors trends for education and hourly wages using the Swiss Labour Force Survey and the Swiss Household Panel. The analysis disentangles the effects of educational expansion from mating patterns and incorporates not only couples, but also singles. Results show an increasing level of assortative mating both for education and for wages. For wage homogamy, selection is more important than adaptation.

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Education, educational mismatch, and wage inequality: Evidence for Spain

Cited by 100 publications

References 14 publications

Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995–2006)

Effects of educational mismatch on private returns to education: An analysis of the Spanish case (1995–2006)

Are there asymmetries in the effects of training on the conditional male wage distribution?

Do Opposites Attract? Educational Assortative Mating and Dynamics of Wage Homogamy in Switzerland, 1992–2014

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