Effects of Overeducation on Wages

2014 Fiscal Year Final Research Report

• Project/Area Number: 24730210
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Applied economics
• Research Institution: Ehime University
• Principal Investigator: HIRAO Tomotaka 愛媛大学, 教育・学生支援機構, 講師 (30403851)
• Research Collaborator: IGAWA Shizue 帝塚山大学, 経済学部, 准教授 (20461858) ; UMEZAKI Osamu 法政大学, キャリアデザイン学部, 准教授 (90366831) ; MATSUSHIGE Hisakazu 大阪大学, 国際公共政策研究科, 教授 (50219424)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 教育過剰 / 学歴ミスマッチ / 高学歴化

Outline of Final Research Achievements

It is generally found that overeducated (undereducated) workers earn less (more) than their correctly placed colleagues and reported that the return to year of overeducation, though positive, is smaller than the return to year of required education. Overeducation (undereducation) refers to the mismatch wherein an individual has higher (lower) qualifications than that required for his/her current jobs. In this research, we analyze the effects of overeducation and undereducation on wages in the Japanese labor market. Our study uses the micro data gathered from a national sample of workers on educational attainments and present job. This study found substantial overeducation penalties and undereducation bonuses, in line with previous researches. This suggests that the occupational structure of the Japanese labor market lacks the capacity to absorb the rising number of educated workers into traditional occupations.

Free Research Field

労働経済学，教育経済学