Post-college schooling, overeducation, and hourly earnings in the United States

Using 1990 US census data, the present paper examines the relationship between overeducation and earnings. The paper updates previous findings and then focuses on those most likely to be overeducated - individuals with post-college schooling. It is hypothesised that specific occupations that require college education may be flexible in their ability to utilise the surplus human capital of the employees. Being overeducated is shown to increase the wages of men working at a job that requires a bachelor's degree. The results are compared with findings in Canada and the UK. Additionally, overeducation is shown to contribute to the gender wage gap.

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Using 1990 US census data, the present paper examines the relationship between overeducation and earnings. The paper updates previous findings and then focuses on those most likely to be overeducated - individuals with post-college schooling. It is hypothesised that specific occupations that require college education may be flexible in their ability to utilise the surplus human capital of the employees. Being overeducated is shown to increase the wages of men working at a job that requires a bachelor's degree. The results are compared with findings in Canada and the UK. ...  [+] Show more