Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104231
Authors: 
Schlicht, Ekkehart
Year of Publication: 
2007
Series/Report no.: 
Munich Discussion Paper 2007-21
Abstract: 
The expansion of higher education in the Western countries has been accompanied by a marked widening of wage differentials and increasing overqualification. While the increase in wage differentials has been attributed to skill-biased technological change that made advanced skills scarce, this explanation does not fit well with the observed increase in overqualification which suggests that advanced skills are in excess supply. By "Reder-competition" I refer to the simultaneous adjustment of wage offers and hiring standards in response to changing labor market condition. I present a simple model of Reder competition that reproduces the simultaneous increase in wage differentials and overqualification in response to an increase in education.
Subjects: 
Hiring standards
employment criteria
selection wages
efficiency wages
mobility
skill-biased technical change
overeducation
wage dispersion
Reder competition
JEL: 
J31
J63
D43
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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