Education Mismatches in the Labor Markets and Their Impact on Wages across Sectors: Evidence from Turkey

Sosyoekonomi Journal, 2018, issue 26(37)

Abstract: The incidence of mismatch and its pay effects vary not only across countries but also across sectors due to different institutional arrangements. The first aim of the paper is to estimate education mismatches in the Turkish labor market. Our second aim is to distinguish the impact of education mismatches on wages in public and private sectors. The results of the analysis show returns on overeducation are lower than required education in both sectors similar to many other country examples. Moreover, we also show that wage differences between overeducation and required education are smaller in the private sector, and through Oaxaca decomposition method most of it can be explained by endowments. Lastly, the effect of undereducation on wages differs across sectors and we conclude that human capital model is not applicable to Turkish public sector.

Keywords: Education Mismatch; Wages; Public; Private Sector; Oaxaca Decomposition. (search for similar items in EconPapers)
JEL-codes: I26 J24 J31 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sos:sosjrn:180313

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