The Causal Effect of Overqualification on Earnings : Evidence from a Bayesian Approach

Jochmann, Markus; Pohlmeier, Winfried

The Causal Effect of Overqualification on Earnings : Evidence from a Bayesian Approach

Files

Heterogene_Arbeit_04_06.pdf(247.68 KB)

Date

2004

Authors

Jochmann, Markus

Pohlmeier, Winfried

Series

Diskussionspapiere der DFG-Forschergruppe Heterogene Arbeit; 04/06

Publication type

Working Paper/Technical Report

Abstract

This paper focuses on the causal effect of overqualification on earnings. Although the issue of overqualification has recently been addressed by quite a huge body of literature there are only few studies examining the causal effect of overqualification on earnings in the sense of Rubin s potential outcome approach. Since for non-experimental data settings the incident of overqualification is not a random event, ignoring selfselection into overqualification leads to a misinterpretation of the empirical results and misleading policy conclusions, since the effect of overqualification on earnings cannot be interpreted causally.
Using a cross-section of 1188 workers from the GSOEP we apply a Bayesian approach based on Markov chain Monte Carlo methods to estimate various treatment effects of overqualification on earnings. Our findings seriously question results ignoring selectivity effects and point out that on average for the overeducated an appropriate job match would not lead to higher earnings.

Subject (DDC)

330 Economics

Keywords

Bildungsrendite,Überqualifikation,Selektionsmodell,returns to schooling,overqualification,potential outcome approach,latent index selection model,Markoc chain Monte Carlo

Cite This

ISO 690

JOCHMANN, Markus, Winfried POHLMEIER, 2004. The Causal Effect of Overqualification on Earnings : Evidence from a Bayesian Approach

BibTex

@techreport{Jochmann2004Causa-12088,
  year={2004},
  series={Diskussionspapiere  der DFG-Forschergruppe Heterogene Arbeit},
  title={The Causal Effect of Overqualification on Earnings : Evidence from a Bayesian Approach},
  number={04/06},
  author={Jochmann, Markus and Pohlmeier, Winfried}
}

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