Overeducation, Job Mobility, and Earnings Mobility Among Holders of First Degrees in Israel

Applied Economics, 2017, 49(26): 2563-2578. DOI: 10.1080/00036846.2016.1243213

Posted: 19 Nov 2008 Last revised: 7 Aug 2018

See all articles by Dmitri Romanov

Dmitri Romanov

Government of the State of Israel - Israel Central Bureau of Statistics

Aviad Tur-Sinai

Max Stern Academic College of Emek Yezreel; Hebrew University of Jerusalem; University of Rochester - School of Nursing

Galit Eizman

Independent

Date Written: November 22, 2008

Abstract

Overeducation-the situation in which an individual has more schooling than is needed to do one's job-has been researched extensively for nearly three decades, but some major issues in regard to it are still topics of ongoing debate. By using a panel data, that combines a survey of two cohorts of Israeli first-degree holders and data from administrative sources on jobs and wages, we examine the contribution of job turnover, cognitive abilities and continuing graduate studies to the likelihood of overeducation and wage dynamics. The study produces four main findings. First, rapid job-switching makes a negative contribution to the increase in employee's wage and there is a negative correlation between two variables-an employee's tenure and the number of past employers in the years after the completion of degree studies-and the probability of being overeducated. Second, the contribution of the individual's cognitive abilities and quantitative reasoning skills to the likelihood of becoming overeducated is negative. Third, the wages of overeducated employees are some 11 percent lower and rise more slowly than the wages of those whose level of schooling corresponds to their jobs; this outcome may be interpreted as indicating that the "scars" of being overeducated tend to be long-lasting. Fourth, the overeducated workers have lower propensity to continue to advanced academic studies.

Keywords: cohort, graduate studies, job turnover, cognitive abilities

JEL Classification: J24, J31, J62

Suggested Citation

Romanov, Dmitri and Tur-Sinai, Aviad and Eizman, Galit, Overeducation, Job Mobility, and Earnings Mobility Among Holders of First Degrees in Israel (November 22, 2008). Applied Economics, 2017, 49(26): 2563-2578. DOI: 10.1080/00036846.2016.1243213. Available at SSRN: https://ssrn.com/abstract=1303626 or http://dx.doi.org/10.2139/ssrn.1303626

Dmitri Romanov (Contact Author)

Government of the State of Israel - Israel Central Bureau of Statistics ( email )

Israel

Aviad Tur-Sinai

Max Stern Academic College of Emek Yezreel ( email )

Emek Yezreel, 19300
Yezreel 19300
Israel

Hebrew University of Jerusalem ( email )

Mount Scopus
Jerusalem, IL Jerusalem 91905
Israel

University of Rochester - School of Nursing ( email )

Helen Wood Hall
601 Elmwood Ave
Rochester, NY 14642
United States

Galit Eizman

Independent ( email )

No Address Available

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