Field of study, qualification mismatch, and wages: does sorting matter?

Graduates from science, technology, engineering, and mathematics (STEM) are usually found to have higher wages and a lower risk of overqualification. However, it is unclear whether the effect of STEM subjects on overqualification and wages [can be interpreted] in a causal way, since individuals choosing these subjects might differ systematically in unobserved characteristics, such as ability. Using data on German male graduates [the authors] show that unobserved heterogeneity indeed matters for differences in the risk of overqualification and wages when STEM graduates are compared to the busin ... Show more

Authors: Berlingieri, Francesco; Zierahn, Ulrich

Published: [Maastricht, Netherlands], European Association of Labour Economists, 2014

Resource type: Conference paper

Physical description: 39 p.

Access item: http://ftp.zew.de/pub/zew-docs/dp/dp14076.pdf

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