Table III Qualification mismatch and...

Table III

Qualification mismatch and impacts on earnings – OLS

	Full sample	Full sample	Male	Female	Urban	Rural
	(1)	(2)	(3)	(4)	(5)	(6)
Years of required education	0.069*** (0.001)	0.078*** (0.002)	0.076*** (0.002)	0.081*** (0.002)	0.087*** (0.003)	0.073*** (0.002)
Years of over-education	0.048*** (0.003)	0.063*** (0.003)	0.058*** (0.004)	0.068*** (0.004)	0.079*** (0.005)	0.053*** (0.004)
Years of under-education	−0.026*** (0.001)	−0.041*** (0.001)	−0.043*** (0.002)	−0.039*** (0.002)	−0.042*** (0.002)	−0.039*** (0.002)
Age cohorts
15–25		Ref	Ref	Ref	Ref	Ref
26–35		0.018 (0.011)	−0.003 (0.016)	0.035** (0.016)	0.027 (0.018)	0.012 (0.015)
36–45		0.028 (0.019)	−0.004 (0.027)	0.058** (0.027)	0.020 (0.030)	0.033 (0.025)
46–55		0.027 (0.027)	−0.027 (0.039)	0.087** (0.038)	−0.023 (0.044)	0.057* (0.035)
56–64		−0.004 (0.037)	−0.018 (0.051)	0.004 (0.055)	−0.107* (0.059)	0.067 (0.047)
Years of experience		0.027*** (0.001)	0.030*** (0.002)	0.023*** (0.002)	0.025*** (0.002)	0.028*** (0.002)
Years of experience-squared		−0.004*** (0.000)	−0.004*** (0.000)	−0.003*** (0.000)	−0.003*** (0.000)	−0.004*** (0.000)
Gender
Male		Ref			Ref	Ref
Female		−0.104*** (0.005)			−0.133*** (0.008)	−0.084*** (0.007)
Marital status
Single		Ref	Ref	Ref	Ref	Ref
Married		0.053*** (0.007)	0.088*** (0.011)	0.031*** (0.009)	0.025** (0.011)	0.076*** (0.009)
Region
Urban		Ref	Ref	Ref
Rural		−0.079*** (0.005)	−0.097*** (0.007)	−0.062*** (0.007)
Constant	2.334*** (0.020)	1.958*** (0.025)	1.985*** (0.034)	1.816*** (0.036)	1.893*** (0.043)	1.901*** (0.030)
Number of observations	29,635	29,635	15,885	13,750	12,586	17,049
R²	0.132	0.248	0.245	0.236	0.222	0.272

	Full sample	Full sample	Male	Female	Urban	Rural
	(1)	(2)	(3)	(4)	(5)	(6)
Years of required education	0.069*** (0.001)	0.078*** (0.002)	0.076*** (0.002)	0.081*** (0.002)	0.087*** (0.003)	0.073*** (0.002)
Years of over-education	0.048*** (0.003)	0.063*** (0.003)	0.058*** (0.004)	0.068*** (0.004)	0.079*** (0.005)	0.053*** (0.004)
Years of under-education	−0.026*** (0.001)	−0.041*** (0.001)	−0.043*** (0.002)	−0.039*** (0.002)	−0.042*** (0.002)	−0.039*** (0.002)
Age cohorts
15–25		Ref	Ref	Ref	Ref	Ref
26–35		0.018 (0.011)	−0.003 (0.016)	0.035** (0.016)	0.027 (0.018)	0.012 (0.015)
36–45		0.028 (0.019)	−0.004 (0.027)	0.058** (0.027)	0.020 (0.030)	0.033 (0.025)
46–55		0.027 (0.027)	−0.027 (0.039)	0.087** (0.038)	−0.023 (0.044)	0.057* (0.035)
56–64		−0.004 (0.037)	−0.018 (0.051)	0.004 (0.055)	−0.107* (0.059)	0.067 (0.047)
Years of experience		0.027*** (0.001)	0.030*** (0.002)	0.023*** (0.002)	0.025*** (0.002)	0.028*** (0.002)
Years of experience-squared		−0.004*** (0.000)	−0.004*** (0.000)	−0.003*** (0.000)	−0.003*** (0.000)	−0.004*** (0.000)
Gender
Male		Ref			Ref	Ref
Female		−0.104*** (0.005)			−0.133*** (0.008)	−0.084*** (0.007)
Marital status
Single		Ref	Ref	Ref	Ref	Ref
Married		0.053*** (0.007)	0.088*** (0.011)	0.031*** (0.009)	0.025** (0.011)	0.076*** (0.009)
Region
Urban		Ref	Ref	Ref
Rural		−0.079*** (0.005)	−0.097*** (0.007)	−0.062*** (0.007)
Constant	2.334*** (0.020)	1.958*** (0.025)	1.985*** (0.034)	1.816*** (0.036)	1.893*** (0.043)	1.901*** (0.030)
Number of observations	29,635	29,635	15,885	13,750	12,586	17,049
R²	0.132	0.248	0.245	0.236	0.222	0.272

Notes: ORU Model. Dependent variable: natural logarithm of hourly wages. Sample of workers from 15 to 64 years old, working full-time in the formal sectors of the economy (excluding the military sector). We use age cohort dummies instead of age to avoid multicollinearity with years of experiences. Heteroskedasticity robust standard errors in parentheses. *,**,***Significant at 10, 5 and 1 percent levels, respectively

Source: Authors’ calculation

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