Vertical skill mismatch and wage consequences in low-skilled jobs: Evidence from Iran

Abstract

Using microdata from Iran's Household Income and Expenditure Survey, the authors investigate the incidence of over-education over the period 2001–12 and show that the ratio of workers with post-secondary education increased steadily in many low-skilled jobs that required lower educational attainment. Their econometric analysis shows that the odds of over-education were higher for women than for men and that the likelihood of over-education also had a strong negative association with a worker's experience. Additional econometric tests reveal that over-education had a negative impact on workers' wages in the private sector but that the opposite was true for public sector jobs.