The impact of overeducation on earnings in China

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Author: Wu, Xiangrong


The paper estimates the returns to overeducation by the Over-Required and Undereducation (ORU) model. The estimated results indicate that the returns to overeducation are positive, but lower than the returns to required education, which suggests that while overeducated employees' earnings are diminished, they still can benefit from it. The paper also attempts to estimate the returns to overeducation by occupations, industries and regions. The result shows that in the field where educational level has much to do with the skills required by employers, education-job match has a greater...  [+] Show more

Subjects: Outcomes; Income; Qualifications; Employment; Industry

Keywords: Return on education and training; Relevance of education and training; Wage; Educational level; Skilled worker; Unskilled worker; Low skilled worker; Occupation

Geographic subjects: China; Asia

Published: Heidelberg, Germany: Springer, 2008

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Journal volume: 3

Journal number: 1

Journal date: March 2008

Pages: pp. 123-136

ISSN: 1673-341X, 1673-5533 (online)

Resource type: Article

Call number: TD/TNC 108.1325

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