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The Career Prospects of Overeducated Americans

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Date
2014-05-01
Authors
Clark, B
Joubert, C
Maurel, AP
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Abstract
In this paper we analyze career dynamics for the large share of U.S. workers who have more schooling than their peers in the same occupation. We use data from the NLSY79 combined with the CPS to analyze transitions into and out of overeducated employment, together with the corresponding effects on wages. Overeducation is a fairly persistent phenomenon at the aggregate and individual levels, with 66% of workers remaining overeducated after one year. Overeducation is not only more common, but also more persistent among blacks and low-AFQT individuals. Further, the hazard rate out of overeducation drops by about 60% during the first 5 years spent overeducated. However, the estimation of a mixed proportional hazard model suggests that this is attributable to selection on unobservables rather than true duration dependence. Finally, overeducation is associated with lower current as well as future wages, which points to the existence of scarring effects.
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Journal article
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https://hdl.handle.net/10161/13190
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Scholars@Duke

Maurel

Arnaud Maurel

Associate Professor of Economics
Professor Maurel’s research focuses on labor economics/education and microeconometrics. Most of his non-methodological work lies at the intersection between the economics of education and labor economics, with a focus on post-secondary education demand and occupational choices. On the methodological side, his research is concerned with the identification and estimation of selection and treatment effect models, as well as models of occupational choice and job search, and on data combin

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