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Title:Overeducation, Wages and Promotions within the Firm PDF Logo
Authors:Groeneveld, Sandra
Hartog, Joop
Issue Date:2003
Series/Report no.:IZA Discussion paper series 883
Abstract:We analyse data from personnel records of a large firm producing energy and telecommunication and test for the effect of deviations between required and attained education of workers. Required education is measured as hiring standards set by the firm. We find the usual effects of over- and undereducation in a wage regression, thus rejecting the argument that such effects are exclusively due to firm fixed effects. Distinguishing, within the firm, between a sheltered internal labour market and an exposed external labour market, we find that at the internal labour market over- and undereducation significantly affect career development, in particular at younger ages, but that such effects are mostly absent at the firm?s external labour market.
Subjects:education
wages
overeducation
career mobility
promotions
JEL:M51
J41
J31
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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