Educational Mismatch and the Earnings Distribution: Where Does the Mismatch Bite?

Keith Allen Bender, Kristen Roche

Research output: Working paperDiscussion paper

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Abstract

This paper focuses on the interrelationship between educational mismatch and earnings taking two 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 quantile regression to examine the mismatch penalty across the earnings distribution, showing that the penalty shrinks as the position in the earnings distribution increases. Different reasons for mismatch show heterogeneity in the penalty at the mean and at different points in the distribution with larger penalties for being mismatched due to working conditions, location, family, and no available job.
Original languageEnglish
PublisherUniversity of Aberdeen Business School
Number of pages27
Publication statusPublished - Apr 2017

Publication series

NameDiscussion Paper in Economics
PublisherUniversity of Aberdeen
No.4
Volume17
ISSN (Electronic)0143-4543

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Keywords

  • educational mismatch
  • earnings
  • decomposition
  • quantile regression

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

Bender, K. A., & Roche, K. (2017). Educational Mismatch and the Earnings Distribution: Where Does the Mismatch Bite? (Discussion Paper in Economics; Vol. 17, No. 4). University of Aberdeen Business School.