Education Mismatches in the Labor Markets and Their Impact on Wages across Sectors: Evidence from Turkey
Abstract
The incidence of mismatch and its pay effects vary not only across countries but also across
sectors due to different institutional arrangements. The first aim of the paper is to estimate education
mismatches in the Turkish labor market. Our second aim is to distinguish the impact of education
mismatches on wages in public and private sectors. The results of the analysis show returns on
overeducation are lower than required education in both sectors similar to many other country
examples. Moreover, we also show that wage differences between overeducation and required
education are smaller in the private sector, and through Oaxaca decomposition method most of it can
be explained by endowments. Lastly, the effect of undereducation on wages differs across sectors and
we conclude that human capital model is not applicable to Turkish public sector.
References
- Acar, E.Ö. (2016) “The Effects of Education-Job Mismatch on Wages: a panel analysis of the Turkish labour market”. UİİİD-İJEAS, (18): 339-354.
- Allen, J., and van der Velden, R. (2001) “Education Mismatches versus Skill Mismatches”. Oxford Economic Papers, 53: 434 – 452.
- Allen, J., van der Velden, R., and Levels, M. (2013) “Skill mismatch and use in developed countries: Evidence from the PIAAC Study”. University of Maastricht Working Paper, No. 13/061.
- Duncan, G., and Hoffman, S. (1981) The incidence and wage effects of overeducation. Economics of Education Review, 1(1), 75–86. El-Hamidi, F. (2009) “Education-Occupation Mismatch and the Effect on Wages of Egyptian Workers”. Economic Research Forum Working Paper, No. 474.
- Filiztekin, A. (2011) “Education-occupation mismatch in Turkish labor market”. MPRA Paper, No. 35123.
- Flisi, S., Goglio, V., Meroni, E.C., Rodrigues, M., and Vera-Toscano, E. (2017) “Measuring Occupational Mismatch: Overeducation and Overskill in Europe - Evidence from PIAAC”. Social Indicators Research, 131(3): 1211-1249.
- Galasi, P. (2008) “The effect of educational mismatch on wages for 25 countries”. Hungarian Academy of Science Working Paper, No. 2008/8.
- Hartog, J. (2000) “Overeducation and Earnings: Where are we, where should we go?”. Economics of Education Review, 19: 131-147.
- ILO (2014) Skill Mismatch in Europe. Geneva: International Labour Organization.
- Kiker, B., Santos, M., and de Oliveira, M. (1997) “Overeducation and undereducation: evidence for Portugal”. Economics of Education Review, 16(2): 111–125.
- Leuven, E., and Oosterbeek, H. (2011) “Overeducation and Mismatch in the Labor Market”. In E. Hanushek, S. Machin, and L. Woessmann, (eds). Handbook of the Economics of Education: Vol. 4, Amsterdam: Elsevier, pp. 283-326.
- McGoldrick, K., and Robst, J. (1996) “Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification”. American Economic Review, 86: 280 - 284.
- Mercan, M.A., Karakaş, M., Çiftçi, S.H., and Babacan, M. (2015) “Sector-Based Analysis of the Education–Occupation Mismatch in the Turkish Labor Market”. Educational Sciences: theory and practice, 15(2), pp. 1-11.
- Meroni, E.C., and Vera-Toscano, E. (2017) “The Persistence of Overeducation among Recent Graduates”. Labour Economics, 48: 120-143.
- Oaxaca, R. (1973) “Male-female wage differentials in urban labor markets”. International Economic Review, 9: 693-709.
- Orbay, B., and Aydede, R. (2015) “Educational mismatch and the cost of underutilization in Turkish labourmarkets”. MRPA Working Paper, No. 65713.
- Rubb, S. (2003) “Overeducation in the labor market: A comment and re-analysis of a metaanalysis”. Economics of Education Review, 22: 621-629.
- Verdugo, R.R., and Verdugo, N.T. (1989) “The Impact of Surplus Schooling on Earnings: Some Additional Findings”. Journal of Human Resources, 24(4): 629-643.
- Varhaest, D., and Omey, E. (2006) “The impact of overeducationand its measurement”. Social Indicators Research, 77: 419-448.
Abstract
Eğitim uyumsuzluklarının görülme sıklığı ve kazanca etkisi hem ülkeler hem de sektörler
arasında farklılık göstermektedir. Makalenin birinci amacı Türkiye emek piyasasındaki eğitim
uyumsuzluklarının büyüklüğünü hesaplamaktır. İkinci amacımız ise eğitim uyumsuzluklarının
ücretleri özel ve kamu sektörlerinde nasıl farklı etkilediğini ortaya koymaktır. Bulgularımıza göre fazla
eğitimli olmanın getirisi her iki sektörde de diğer ülke örnekleri ile benzer şekilde gereken eğitimin
getirisinden daha azdır. Ayrıca, fazla eğitim ve gereken eğitim arasındaki ücret farkının özel sektöde
daha az olduğu ve Oaxaca ayrıştırma yöntemi ile bu farkın büyük oranda donatım ile açıklanabileceği
gösterilmiştir. Son olarak, az eğitimli olmanın sektörler arasında ücretleri farklı etkilediği ve Türkiye
kamu sektöründe beşeri sermaye modelinin geçerli olmadığı da sonucuna da varılmıştır.
References
- Acar, E.Ö. (2016) “The Effects of Education-Job Mismatch on Wages: a panel analysis of the Turkish labour market”. UİİİD-İJEAS, (18): 339-354.
- Allen, J., and van der Velden, R. (2001) “Education Mismatches versus Skill Mismatches”. Oxford Economic Papers, 53: 434 – 452.
- Allen, J., van der Velden, R., and Levels, M. (2013) “Skill mismatch and use in developed countries: Evidence from the PIAAC Study”. University of Maastricht Working Paper, No. 13/061.
- Duncan, G., and Hoffman, S. (1981) The incidence and wage effects of overeducation. Economics of Education Review, 1(1), 75–86. El-Hamidi, F. (2009) “Education-Occupation Mismatch and the Effect on Wages of Egyptian Workers”. Economic Research Forum Working Paper, No. 474.
- Filiztekin, A. (2011) “Education-occupation mismatch in Turkish labor market”. MPRA Paper, No. 35123.
- Flisi, S., Goglio, V., Meroni, E.C., Rodrigues, M., and Vera-Toscano, E. (2017) “Measuring Occupational Mismatch: Overeducation and Overskill in Europe - Evidence from PIAAC”. Social Indicators Research, 131(3): 1211-1249.
- Galasi, P. (2008) “The effect of educational mismatch on wages for 25 countries”. Hungarian Academy of Science Working Paper, No. 2008/8.
- Hartog, J. (2000) “Overeducation and Earnings: Where are we, where should we go?”. Economics of Education Review, 19: 131-147.
- ILO (2014) Skill Mismatch in Europe. Geneva: International Labour Organization.
- Kiker, B., Santos, M., and de Oliveira, M. (1997) “Overeducation and undereducation: evidence for Portugal”. Economics of Education Review, 16(2): 111–125.
- Leuven, E., and Oosterbeek, H. (2011) “Overeducation and Mismatch in the Labor Market”. In E. Hanushek, S. Machin, and L. Woessmann, (eds). Handbook of the Economics of Education: Vol. 4, Amsterdam: Elsevier, pp. 283-326.
- McGoldrick, K., and Robst, J. (1996) “Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification”. American Economic Review, 86: 280 - 284.
- Mercan, M.A., Karakaş, M., Çiftçi, S.H., and Babacan, M. (2015) “Sector-Based Analysis of the Education–Occupation Mismatch in the Turkish Labor Market”. Educational Sciences: theory and practice, 15(2), pp. 1-11.
- Meroni, E.C., and Vera-Toscano, E. (2017) “The Persistence of Overeducation among Recent Graduates”. Labour Economics, 48: 120-143.
- Oaxaca, R. (1973) “Male-female wage differentials in urban labor markets”. International Economic Review, 9: 693-709.
- Orbay, B., and Aydede, R. (2015) “Educational mismatch and the cost of underutilization in Turkish labourmarkets”. MRPA Working Paper, No. 65713.
- Rubb, S. (2003) “Overeducation in the labor market: A comment and re-analysis of a metaanalysis”. Economics of Education Review, 22: 621-629.
- Verdugo, R.R., and Verdugo, N.T. (1989) “The Impact of Surplus Schooling on Earnings: Some Additional Findings”. Journal of Human Resources, 24(4): 629-643.
- Varhaest, D., and Omey, E. (2006) “The impact of overeducationand its measurement”. Social Indicators Research, 77: 419-448.
Details
| Primary Language | English |
|---|---|
| Journal Section | Articles |
| Authors | |
| Publication Date | July 31, 2018 |
| Submission Date | August 9, 2017 |
| Published in Issue | Year 2018 Volume: 26 Issue: 37 |