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Differential overeducation in East and West Germany: extending Frank's theory on economic returns changes the picture of disadvantaged women

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Article

Boll, Christina ; Leppin, Julian Sebastian

Labour. Review of Labour Economics and Industrial Relations

2016

30

4

December

education ; education of women ; higher education ; wages

Germany

Education and training

http://dx.doi.org/10.1111/labr.12084

English

Bibliogr.

"We test the theory of differential overeducation which predicts that women and particularly partnered women are more affected by overeducation than men. Our OLS and FE estimations based on German SOEP data confirm that women indeed exhibit more years of excess education in both regions. Women's higher educational mismatch accounts for 5 pp of the West German pay gap. However, women suffer lower wage penalties from overeducation than men in both regions and, for partnered people, higher female wage penalties vanish in the FE estimations. Hence, women are more rationed than men concerning overeducation magnitude, confirming Frank's theory, but rather less disadvantaged with respect to economic returns."

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