The economic problems of increasing urbanisation are presently the subject of active discussion - in other industrialised and in developing countries no less than in the Federal Republic of Germany. The following article deals with the special features of the development in the Federal Republic.

This paper studies the incidence and consequences of the mismatch between formal education and the educational requirements of jobs in Estonia during the years 1997-2003. We find large wage penalties associated with the phenomenon of educational mismatch. Moreover, the incidence and wage penalty...