An analysis of perceived overqualification in the Swiss labor market

This paper takes Switzerland as a case study and examines the determinants of (perceived) overqualification in a macroeconomic setting where there is indeed excess demand for qualified labor. Our analyses show that overqualification in the Swiss labor market cannot be explained by possible rigidities and discrimination. Hence, the labor market in Switzerland must in general be considered as efficient. Hence, unobserved heterogeneity should indeed account for the phenomenon of overqualification / overeducation. Nonetheless, women's family commitments are found to restrict the full utilization of their investment in human capital. Thus, there exists some room for policy measures to improve the job – education match of women (especially of those who have children between 0 – 6 years of age) by increasing the availability of external child care facilities and / or making child care at home more affordable.Overeducation

Private returns to education versus education spill-over effects: Or what co-workers account for!

In this study we test whether education spill-over effects biase private returns to education. We newly investigate for such effects within narrowly defined occupational groups of a given firm using, going thus a step further than earlier studies analysing such effects at employer level or within regions. Using panel data from a Swiss employer-based labour force survey of 1996 we find clear empirical evidence for education spill-over effects on individual wages (2%). This result proved to be robust against an alternative explanation based on imperfect substitution between highly and less educated workers. Consequently, conventionally calculated private returns to education are shown to be biased upward

Public funding and enrolment into higher education in Europe

In this paper we provide evidence for the impact of public funding on enrolment of students in college. We use a panel for European countries and apply instrumental variables techniques to find that public funding for schooling - regardless at what level - does increase college enrolment alike with an elasticity of about one. A second issue concerns the impact of tuition fees, which are found to reduce college enrolment.College enrolment; public funding; tuition costs

A Note on the Carlson-Parkin Method of Quantifying Qualitative Data

Qualitative surveys enjoy huge popularity among business cycle analysts and research institutes since they provide fast information on the stance of the economy. However, in order to derive quantitative statements researchers have to rely on assumptions about the relation between quantitative and qualitative information. This paper introduces a micro data set that combines individual quantitative and qualitative information and presents first tests of common assumptions. It suggests a modifcation of the Carlson and Parkin (1975) method and a solution to the zero response problem

To my wife, with love! Does within-household specialisation explain husband's better job-education-match?: does within-household specialisation explain husband's better job-education-match?

Married male workers are found to have a lower incidence of overeducation. A theoretical explanation for this phenomenon is lacking. We test in our study whether the traditional specialisation of spouses’ time between home and market production tends to improve a husband’s jobeducation-match (JEM). We test this hypothesis first by drawing on the method used in the marriage wage premia literature based mainly on the model of Becker (1985). In addition, we perform a new test following the theory of Fran¸cois (1998), which requires less restrictive assumptions. Overall, our results show that within-household specialisation (WHS) explains a substantial part of the superior JEM of husbands, regardless of whether a wife’s labour market participation (experience) or both spouses housework hours are used to measure specialisation. The results and in particular the independent and significant impact of women’s housework hours on their husbands’ JEM, however, speak clearly in favour of Fran¸cois’ theory and against the explanation of Becker. Testing for an endogeneity bias due to a possible sorting process of more able husbands with “traditional” spouses or a measurement error of the JEM does not alter these conclusions

To my Wife, with Love! Does Within-household Specialisation Explain Husbands' Better Job-education-match?

Married male workers are found to have a lower incidence of overeducation. A theoretical explanation for this phenomenon is lacking. We test in our study whether the traditional specialisation of spouses’ time between home and market production tends to improve a husband’s jobeducation- match (JEM). We test this hypothesis first by drawing on the method used in the marriage wage premia literature based mainly on the model of Becker (1985). In addition, we perform a new test following the theory of François (1998), which requires less restrictive assumptions. Overall, our results show that within-household specialisation (WHS) explains a substantial part of the superior JEM of husbands, regardless of whether a wife’s labour market participation (experience) or both spouses housework hours are used to measure specialisation. The results and in particular the independent and significant impact of women’s housework hours on their husbands’ JEM, however, speak clearly in favour of François’ theory and against the explanation of Becker. Testing for an endogeneity bias due to a possible sorting process of more able husbands with “traditional” spouses or a measurement error of the JEM does not alter these conclusions.Overeducation; Household models, Human capital, Labour productivity

Private returns to education versus education spill-over effects - Or what co-workers account for!

ISSN:1435-8921ISSN:0377-733

Overeducation in the Swiss Labour Market: Does Anything Go Wrong?

We examine the determinants of overeducation in Switzerland - an economy generally characterised by excess qualified labor demand. We define those who are overeducated more precisely, and include in our sample only those who work in occupations relating to their educational background. Failing to make this adjustment might have blurred the results of earlier studies. Our analyses show that overeducation in Switzerland cannot be explained by rigidities limiting the adjustments of supply and demand in the labor market. Hence, the Swiss labor market must in general be considered as efficient. Unobserved heterogeneity should indeed account for the phenomenon of overeducation

A Note on the Carlson-Parkin Method of Quantifying Qualitative Data

Qualitative surveys enjoy huge popularity among business cycle analysts and research institutes since they provide fast information on the stance of the economy. However, in order to derive quantitative statements researchers have to rely on assumptions about the relation between quantitative and qualitative information. This paper introduces a micro data set that combines individual quantitative and qualitative information and presents first tests of common assumptions. It suggests a modifcation of the Carlson and Parkin (1975) method and a solution to the zero response problem