Sandra Nieto|Raúl Ramos
Overeducation, Skills and Wage Penalty: Evidence for Spain Using PIAAC Data
Universitat Oberta de Catalunya|Universitat de Barcelona
literature educational mismatches finds overeducated workers suffer wage penalty compared properly educated workers level education recent literature also suggests individuals skill heterogeneity could explain wage differences overeducated properly matched workers hypothesis overeducated workers earn less due lower competences skills relative terms however hypothesis rarely tested due data limitations individuals skills aim paper test individuals skill heterogeneity theory spain using microdata piaac one developed countries supporting highest overeducation rates adult population holds lowest level skills among set developed countries hypothesis wage penalty overeducation spain explained lower skill level overeducated workers obtained evidence confirms hypothesis certain extent skills explain partially wage penalty overeducation