Overeducation Dynamics and Personality

Maite Blázquez Cuesta and Santiago Budria Rodriguez ()

No 2011/05, Working Papers in Economic Theory from Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History)

Abstract: We use the 2000-2008 waves of the German Socioeconomic Panel to examine overeducation transitions. The results are based on a first-order Markov model that allows us to account for both the initial conditions problem and for potential endogeneity in attrition. We find that overeducation dynamics, especially the probability of entering overeducation, is significantly influenced by personality. Notwithstanding theses differences associated with individual heterogeneity, still there appears to be considerable overeducation persistence. Almost 18% of the overeducation risk is due to individual state dependence, i.e., the fact of having been overeducated in the previous year.

Keywords: Overeducation dynamics; trivariate probit model; personality traits. (search for similar items in EconPapers)
JEL-codes: C33 I21 J24 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2011-10
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Citations: View citations in EconPapers (1)

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Journal Article: Overeducation dynamics and personality (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:uam:wpaper:201105

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