Educational mismatch and the earnings distribution

Keith A. Bender, Kristen Roche

Research output: Contribution to journalArticle

Abstract

This article focuses on the interrelationship between educational mismatch and earnings, taking three new approaches. First, we examine decompositions of the mismatch wage gap, finding that characteristics explain less than half of the mismatch penalty. Second, we use unconditional quantile regression to examine the mismatch penalty across the earnings distribution, showing that the penalty shrinks as the position in the earnings distribution increases. Third, we decompose the differentials using quantile decompositions. Different reasons for mismatch show heterogeneity in our results, with larger penalties for being mismatched due to working conditions, location, family, and no available job.
Original languageEnglish
Pages (from-to)441-456
Number of pages16
JournalSouthern Economic Journal
Volume85
Issue number2
Early online date3 Sep 2018
DOIs
Publication statusPublished - Oct 2018

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Keywords

  • educational mismatch
  • earnings
  • decomposition
  • quantile regression

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