Negative wage effects of educational mismatch have become a stylized fact. Whether these are explained by differences in unobserved productivity or poor matching is still to be answered conclusively. In an empirical analysis based on data from the German Socio-Economic Panel and the International Adult Literacy Survey, a broad econometric strategy is applied to solve the problem of unobserved heterogeneity ...
The negative effects of unemployment on wellbeing have been clearly documented in the economics literature. However some current employees may move directly into a new job, never experiencing an unemployment spell, yet find themsleves in a new job underutilising their skills or education ("downchanges"). We assess empirically, whether downchanges are similar to unemployment spells, in that ...