We propose a simple theory of under- and over-employment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low-type workers can perform skilled jobs. People have different non-pecuniary values over these jobs, akin to a Roy model. We calibrate two...

This paper investigates the extent to which the returns to gaining a PhD degree depend upon the region of birth, the region where the degree was earned, and the place of work. Eastern Germany serves as an interesting showcase in light of the ongoing debate surrounding the underrepresentation of...

Evidence shows that many college graduates are employed in jobs for which a degree is not required (overeducation), and in which the skills they learned in college are not being fully utilized (overskilling). Policymakers should be particularly concerned about widespread overskilling, which is...