The paper provides a theoretical foundation for the empirical regularities observed in estimations of wage consequences of overeducation and undereducation. Workers with more education than required for their jobs are observed to suffer wage penalties relative to workers with the same education...

We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of...

In nine papers presented at the Turin Meetings to celebrate EALE's 25th anniversary, leading authors survey past developments in their research domains and discuss causes for shifts in attention paid to particular questions and issues. Inspired by these papers, this introductory article provides...