Overeducation in the Czech Labour Market
|Author:||Bc. Ľubica Laslopová|
|Year:||2015 - summer|
|Leaders:|| Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||In one way or another, labour market theories link additional years of education
to better jobs and higher earnings. The empirical research, however,
identified systematic distortions of this rule. Some workers are considered to
be overeducated, as their education exceeds the level required for their job.
This thesis deals with overeducation in the Czech labour market, as there are
still few studies considering this topic. First we estimate incidence of overeducation
using objective measures of overeducation. Then we perform an analysis
of its determinants and possible consequences, namely pay penalty and lower
job satisfaction. The results are to a large extent dependent on the measurement
method. Despite these differences, we found that certain factors, such as
general health, place of residence, ethnicity or managerial positions may influence
the probability of mismatch. We provide some evidence that the returns
to “surplus” education might be systematically lower than returns to required
education. Also, overeducation can be linked to a lower job satisfaction.