ERIC Number: EJ794628
Record Type: Journal
Publication Date: 2008-Jun
Reference Count: N/A
Education, Educational Mismatch, and Wage Inequality: Evidence for Spain
Budria, Santiago; Moro-Egido, Ana I.
Economics of Education Review, v27 n3 p332-341 Jun 2008
In this paper, we explore the connection between education and wage inequality in Spain for the period 1994-2001. Drawing on quantile regression, we describe the conditional wage distribution of different populations groups. We find that higher education is associated with higher wage dispersion. A contribution of the paper is that we explicitly take into account the fact that workers who are and workers who are not in jobs commensurate with their qualifications have a different distribution of earnings. We differentiate between three different types of educational mismatch: "over-qualification", "incorrect qualification", and "strong mismatch". We find that while over-qualification and incorrect qualification are not associated with lower wages, strong mismatch carries a pay penalty that ranges from 13% to 27%. Thus, by driving a wedge between matched and mismatched workers, the incidence of strong mismatch contributes to enlarge wage differences within education groups. We find that over the recent years, the proportion of strongly mismatched workers rose markedly in Spain, contributing toward further within-groups dispersion.
Descriptors: Wages, Salary Wage Differentials, Foreign Countries, Employment Qualifications, Comparable Worth, Educational Status Comparison, Occupational Surveys, National Surveys, Economics Education, Regression (Statistics)
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Publication Type: Journal Articles; Reports - Evaluative
Education Level: Adult Education
Authoring Institution: N/A
Identifiers - Location: Spain