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Over Education and Its Wage Consequences in the Labor Market of Iran

Javaheri, Mohammad Amin | 2015

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 46856 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Keshavarz Haddad, Gholamreza
  7. Abstract:
  8. An increasing important issue faced by Iranian labor market at the current decade is the job positions which have been occupying by workers who are not match for them. Over the recent past years the supply of college educated labor has experienced a significant increase, while the demand side of the market has shrunk because of low economic growth. This study intends to examine intensity of the over-education on the individuals’ wage By making two alternative definitions for overeducaion namely; realized match and job analysis. To this end we use households’ income and expenditure survey for 2001, 2005, 2009 and 2012 in rural and urban areas. Theoretical background is based on the Duncan and Hoffman (1981) and Verdugo and Verdugo (1989) models and we use multinomial logit and censored regression techniques to test our hypothesis. The findings of multinomial logit model reveal that more years of schooling, less job experiment, being male and employment in private sector lead to higher probability of being overeducated and The findings of Duncan & Hoffman model based on realized match criterion show that there is a direct and significant relationship between the years of education which adequate for each job and monthly salary of the individuals. However, the return of years of over-education and under-education is insignificant. The findings of Verdugo & Verdugo model and realized match criterion show that there is a positive relationship between the years of schooling and monthly salary of the individuals
  9. Keywords:
  10. Mincer Earning Function ; Schooling Years ; Miss-Match ; Over-Education ; Under-Education ; Earnings

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