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Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics

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  • Jacobs, Valentine
  • Rycx, François
  • Volral, Mélanie
Abstract
This paper analyses the wage effects of educational mismatch by workers’ origin using a sizeable, detailed matched employer-employee dataset for Belgium. Relying on a fine-grained approach to measuring educational mismatch, the results show that over-educated workers, regardless of their origin, suffer a wage penalty compared to their well-matched former classmates. However, the magnitude of this wage penalty is found to vary considerably depending on workers’ origin. In addition, the estimates show that origin-based differences in over-education wage penalties significantly depend on both demographics (workers’ region of birth, education, and gender) and employer characteristics (firm size and collective bargaining).

Suggested Citation

  • Jacobs, Valentine & Rycx, François & Volral, Mélanie, 2021. "Wage Effects of Educational Mismatch According to Workers’ Origin: The Role of Demographics and Firm Characteristics," GLO Discussion Paper Series 966, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:966
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    More about this item

    Keywords

    Immigrants; educational mismatch; wage gap; linked employer-employee data;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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