The great Canadian training robbery: evidence on the returns to educational mismatch

Vahey, Shaun P.

doi:10.1016/s0272-7757(98)00029-6

Cited by 53 publications

(66 citation statements)

References 17 publications

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“…Some analyses extend the disaggregation of the sample beyond that based on nativity, gender or race to consider occupations and skill level. Rubb (2003), Rumberger (1987), Vahey (2000, Verdugo and Verdugo (1989) and Miller (2008, 2009) are examples.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Hartog (2000, p. 135). These earnings effects, however, have been shown to vary by gender, nativity, occupation and skill level (see Rumberger, 1987;Hartog, 2000;Vahey, 2000;Chiswick and Miller, 2008 Kler (2005) used both the RM and JA procedures in an analysis of the earnings of native-born graduates in the Australian labor market in 1996. He reports that the findings are sensitive to the method used for the reference level of education.…”

Section: Literature Reviewmentioning

confidence: 99%

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

Chiswick

Miller

2010

Economics of Education Review

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Forschungsinstitut zur Zukunft der ArbeitInstitute for the Study of Labor Does the Choice of Reference Levels of Education Matter in the ORU Earnings Equation?IZA The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public.IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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

Chiswick

Miller

2010

Economics of Education Review

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“…The raw weekly earnings gaps presented were $502 for university-educated males (equivalent to about $28,393 annually) and $356 for university-educated females (equivalent to about $20,135 annually). Annual estimates could not be derived from the data presented in Vahey (2000).…”

Section: Notes *The Authors Thank Seamus Mcguinness Morleymentioning

confidence: 99%

“…This lack of attention is somewhat surprising given the prevalence of immigrant overeducation as described above, as well as the well-developed body of literature that examines the earnings consequences of overeducation. 3 On the other hand, there were no published studies examining the relationship between educational mismatch and wages in Canada until quite recently (Vahey 2000). Most Canadian studies on overeducation neglect the immigrant population because of the particular research focus (e.g., literacy, the Canadian post-secondary education system) or because of the absence, or unacceptably small numbers, of immigrant observations within the data sets employed (Boothby 1999;Frenette 2004).…”

Section: Introductionmentioning

confidence: 99%

Overeducated Immigrants in the Canadian Labour Market: Evidence from the Workplace and Employee Survey

Wald

Fang

2008

Canadian Public Policy

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Dans cet article, nous examinons la question de la surqualification des immigrants sur Ie marche du travail au Canada. Nous utilisons des donnees de 1999 tirees de I'Enquete sur Ie milieu de travail et les employes pour analyser les determinants de la surqualification et ses effets sur les revenus de travail. On trouve, dans la litterature actuelle, de nombreuses etudes sur les effets de la surqualification ; toutefois, celle-ci presente la premiere evaluation du rendement de I 'education au Canada realisee sur la base du nombre d'annees de scolarite necessaires pour repondre aux exigences reliees a un emploi, telles que celles-ci sont per~ues par les travailleurs. On observe que, en comparaison avec les travailleurs nes au Canada, les immigrants recents sont beaucoup plus touches par la surqualification, et que, pour eux, Ie rendement que devrait procurer un plus haut degre de scolarite est relativement faible. Ce phenomene semble expliquer une part importante de I'ecart qui existe entre les salaires des immigrants recents et ceux des travailleurs nes au Canada. Mots ch!s : surqualification, immigrants, revenus de travail, rendement de I'education, immigrationThis paper addresses the overeducation of recent immigrants in the Canadian labour market. Data from the 1999 Workplace and Employee Survey are used to explore the determinants and earnings consequences of overeducation. Although a well-developed body of literature examines the earnings consequences of overeducation, this paper presents the first Canadian estimates of returns to years of schooling that are contingent upon perceived job requirements. Compared with Canadian-born workers, recent immigrants are found to have a relatively high incidence of overeducation and to earn relatively low returns for surplus schooling. These are shown to be major contributors to the earnings gap between recent immigrants and workers born in Canada.

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“…The model also suggests that elasticities of female labour supply fall with education level, thus allowing for full wage correction in jobs where females are undereducated; nevertheless, as the authors point out, these results require further research (Hartog and Oosterbeek, 1988). However, this finding is unlikely to be unique to the Dutch labour market: Vahey (2000) reported no lower return to surplus education for overeducated Canadian females, despite observing lower returns for some overeducated Canadian males.…”

Section: Consistency Of the Observed Facts With Theoretical Frameworkmentioning

confidence: 76%

Approaches to Skills Mismatch in the Labour Market: A Literature Review

Sala¹

2011

PapRevSoc

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Skills mismatch in the labour market describes the fact that levels or types of skills of individuals are inadequate in view of particular job requirements. There exists no accepted unified theory of skills mismatch. The overeducation literature, inspired by several classical theoretical frameworks (human capital theory, job competition, and assignment models), attempts to define and measure the incidence of the phenomenon, but often understates the heterogeneity of both jobs and manpower. Some authors have tried to make up for this deficit by focusing on specific groups or individual abilities. By contrast, a competence approach places the observed no-causality relationship between training and occupation at the centre of its analysis, rather than considering it as a market imperfection. By doing so, it provides an alternative way of conceptualising skills mismatch, and promisingly challenges the normative assumptions and current applications of the classical frameworks. Key words: labour market; mismatch; skills; competences; overeducation. Resumen. Análisis del desajuste de competencias en el mercado laboral: un estado de la cuestiónEl desajuste de competencias en el mercado de trabajo describe el hecho de que el nivel y/o el tipo de formación de los individuos no se adecuan a aquellos que requieren sus puestos de trabajo. A pesar de que la literatura de la sobreeducación, inspirada en los marcos teóricos clásicos (básicamente la teoría del capital humano), intenta definir y medir la incidencia del desajuste, no existe una teoría unificada sobre dicho fenómeno. Sin embargo, estos análisis omiten a menudo la heterogeneidad, tanto de los puestos de trabajo como de la Guillem Sala propia mano de obra. Algunos autores se han enfrentado a este vacío desde distintas perspectivas (grupos específicos, habilidades individuales, etc.). Más allá, un enfoque basado en competencias sitúa la relación no causal observada entre formación y empleo en el centro de su análisis, más que considerarla como una imperfección del mercado. Así, ofrece una vía alternativa para conceptualizar el desajuste de competencias y cuestiona los supuestos normativos que subyacen en las perspectivas clásicas.

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The great Canadian training robbery: evidence on the returns to educational mismatch

Cited by 53 publications

References 17 publications

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

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

Overeducated Immigrants in the Canadian Labour Market: Evidence from the Workplace and Employee Survey

Approaches to Skills Mismatch in the Labour Market: A Literature Review

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