@article{6e99deda50684146a8705fc369787ae1,
title = "Nash bargaining and the wage consequences of educational mismatches",
abstract = "The paper provides a theoretical foundation for the empirical regularities observed in estimations of wage consequences of overeducation and undereducation. Workers with more education than required for their jobs are observed to suffer wage penalties relative to workers with the same education in jobs that require their educational level. Similarly, workers with less education than required for their jobs earn wage rewards. These departures from the Mincer human capital earnings function can be explained by Nash bargaining between workers and employers. Under fairly mild assumptions, Nash bargaining predicts a wage penalty for overeducation and a wage reward for undereducation. This paper reviews the established empirical regularities and then provides Nash bargaining results that explain these regularities.",
keywords = "Mincer earnings function, Nash bargaining, Overeducation, Qualitative mismatches, Undereducation, Wages",
author = "Michael Sattinger and Joop Hartog",
note = "Funding Information: The authors gratefully acknowledge the comments of Ernest Berkhout, Jules Theeuwes, Maikel Volkering and the referee as well as participants at seminars at the Amsterdam Institute for Advanced Labour Studies, the Expert Workshop, Skills Mismatch and Firm Dynamics: Integrating Skills with the World of Work, organized by The European Centre for the Development of Vocational Training (CEDEFOP), in cooperation with The Centre for Research in Employment, Skills & Society (CRESS), and SEO Economic Research, Amsterdam. This research was supported in part by Randstad Holding. The content and any remaining errors are the responsibility of the authors. Copyright: Copyright 2013 Elsevier B.V., All rights reserved.",
year = "2013",
month = aug,
doi = "10.1016/j.labeco.2013.03.002",
language = "English",
volume = "23",
pages = "50--56",
journal = "Labour Economics",
issn = "0927-5371",
publisher = "Elsevier B.V.",
}