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Estimating German overqualification with stochastic earnings frontiers

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Abstract

We estimate individual potential income with stochastic earnings frontiers to measure overqualification as the ratio between actual income and potential income. To do this, we remove a drawback of the IAB employment sample, the censoring of the income data, by multiple imputation. The measurement of overqualification by the income ratio is also a valuable addition to the overeducation literature because the well-established objective or subjective overeducation measures focus on some ordinal matching aspects and ignore the metric income and efficiency aspects of overqualification.

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Authors and Affiliations

  1. Institut für Statistik und Ökonometrie, Christian-Albrechts-Universität, Olshausenstr. 40, 24118, Kiel, Germany

    Uwe Jensen

  2. Institut für Arbeitsmarkt- und Berufsforschung (IAB), Weddigenstr. 20-22, 90478, Nürnberg, Germany

    Hermann Gartner

  3. Lehrstuhl für Statistik und Ökonometrie, Otto-Friedrich-Universität, Bamberg, Germany

    Susanne Rässler

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  1. Uwe Jensen
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  2. Hermann Gartner
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  3. Susanne Rässler
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Correspondence to Uwe Jensen.

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Jensen, U., Gartner, H. & Rässler, S. Estimating German overqualification with stochastic earnings frontiers. AStA Adv Stat Anal 94, 33–51 (2010). https://doi.org/10.1007/s10182-009-0121-6

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  • DOI: https://doi.org/10.1007/s10182-009-0121-6

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