Using data from the 2004 National Sample Survey of Registered Nurses, the role of occupational heterogeneity in the standard overeducation--required--undereducation (ORU) earnings function introduced by Duncan and Hoffman [1981. The incidence and wage effects of overeducation. <italic>Economics of...</italic>

Contrary to expectations, the likelihood of overeducation is shown to be inversely related to unemployment rates when not control for selectivity. Furthermore, incidence data show that overeducation is more common among men than women and among Whites than Blacks. At issue is selectivity:...

Due to short-term asymmetric information, overeducated and undereducated workers are shown to have different optimal strategies in seeking upward occupational mobility into their next positions. Undereducated workers typically have other human capital strengths, but these strengths are not...