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Abstract

The educational expansion in many advanced economies in the past few decades has triggered a debate on overeducation. The aim of the study is to provide an empirical evaluation of the wage effects of overeducation in different occupational groups. We also analyse whether these effects differ between genders. In order to achieve this, we use individual data from the Structure of Wages and Salaries by Occupations database of firms with 10 or more employees in Poland. We use data from the 2006-2014 waves of the survey. We calculate the impact of overeducation on wages using a Mincer-type wage regression model. We show that on average workers are rewarded for being overeducated, but the size of wage effects of overeducation differs among particular occupational groups. We show also that the choice of the method of measurement of overeducation affects the results.
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Authors and Affiliations

Paulina Broniatowska
1
ORCID: ORCID

  1. University of Warsaw
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Abstract

Recently, in most developed economies, the average age of the workforce has been growing rapidly. Therefore, the questions arise how will it affect the level of wages and the shape of age-productivity and age-wage profiles. The aim of the paper is to analyse the relationship between changes in the age structure of the employment and wages of individuals in minor occupational groups. Using individual data from the Structure of Earnings Survey in Poland in 2006-2014 we created an unique database of individual wages and the characteristics of employed in occupational groups at 3-digit level of classification. In our analysis we used an extended version of Mincerian wage model where both the characteristics of employees (education, work tenure, age, gender, and type of employment contract) and employers (size and ownership sector) were taken into account. The results for the whole sample indicate a significant and negative relationship between the proportion of older workers in employment in a given occupational group and individual wages. However, when the analyses were performed separately for each of the 1-digit occupational groups, the results varied significantly. In those groups where knowledge and qualifications of employees are more important than physical strength had to be updated permanently, an increase in the number of the older workers raises the average wages.

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Authors and Affiliations

Paulina Broniatowska
Aleksandra Majchrowska
Maciej Nasiński

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