A mismatch made in Heaven: a hedonic analysis of overeducation and undereducation

Daniel P. McMillen, Paul T. Seaman, Larry D. Singell

    Research output: Contribution to journalArticle

    7 Citations (Scopus)

    Abstract

    In this paper, a hedonic pairing process is modeled in which some workers may be overeducated or undereducated as an equilibrium outcome of a dynamic labor market. Undereducated workers are those whose abilities and training permit them to move into a job with higher qualifications, whereas overeducated workers are highly qualified workers who select into lower-skill, entry-level jobs that provide the training (or signal) necessary for promotion. The empirical model shows that these pairing types cannot be directly identified in a cross section since all workers are exactly educated during a portion of their career. However, pairing types may be imputed by comparing predicted and observed qualifications of the worker and predicted and observed requirements of the firm. Using a rich cross section and a panel of British working-age males to identify the pairing types, we confirm the predicted career development patterns with regard to on-the-job training, promotion, and wages.
    Original languageEnglish
    Pages (from-to)901-930
    Number of pages30
    JournalSouthern Economic Journal
    Volume73
    Issue number4
    Publication statusPublished - 2007

    Fingerprint

    Mismatch
    Overeducation
    Workers
    Hedonic analysis
    Undereducation
    Cross section
    Qualification
    Empirical model
    Career development
    On-the-job training
    Labor market dynamics
    Wages

    Cite this

    McMillen, D. P., Seaman, P. T., & Singell, L. D. (2007). A mismatch made in Heaven: a hedonic analysis of overeducation and undereducation. Southern Economic Journal, 73(4), 901-930.
    McMillen, Daniel P. ; Seaman, Paul T. ; Singell, Larry D. / A mismatch made in Heaven: a hedonic analysis of overeducation and undereducation. In: Southern Economic Journal. 2007 ; Vol. 73, No. 4. pp. 901-930.
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    abstract = "In this paper, a hedonic pairing process is modeled in which some workers may be overeducated or undereducated as an equilibrium outcome of a dynamic labor market. Undereducated workers are those whose abilities and training permit them to move into a job with higher qualifications, whereas overeducated workers are highly qualified workers who select into lower-skill, entry-level jobs that provide the training (or signal) necessary for promotion. The empirical model shows that these pairing types cannot be directly identified in a cross section since all workers are exactly educated during a portion of their career. However, pairing types may be imputed by comparing predicted and observed qualifications of the worker and predicted and observed requirements of the firm. Using a rich cross section and a panel of British working-age males to identify the pairing types, we confirm the predicted career development patterns with regard to on-the-job training, promotion, and wages.",
    author = "McMillen, {Daniel P.} and Seaman, {Paul T.} and Singell, {Larry D.}",
    note = "dc.publisher: Southern Economic Association The article has been selected as the winner of the Georgescu-Roegen Prize for 2007. The Roegen Prize is awarded each year by the Southern Economic Association to the author(s) of the best academic article published in the Southern Economic Journal.",
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    McMillen, DP, Seaman, PT & Singell, LD 2007, 'A mismatch made in Heaven: a hedonic analysis of overeducation and undereducation', Southern Economic Journal, vol. 73, no. 4, pp. 901-930.

    A mismatch made in Heaven: a hedonic analysis of overeducation and undereducation. / McMillen, Daniel P.; Seaman, Paul T.; Singell, Larry D.

    In: Southern Economic Journal, Vol. 73, No. 4, 2007, p. 901-930.

    Research output: Contribution to journalArticle

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