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The canonical supply-demand model of the wage returns to skill has been extremely influential; however, it has faced several important challenges. Several studies show that the standard approach sometimes produces theoretically wrong-signed elasticities of substitution, yields counterintuitive...
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, and informal own-account workers. The incidence of overeducation is modest among the oldest cohort (8.7%) but prevalent … among the youngest cohort (29.3%). Government employees face the highest overeducation wage penalties (28.2%) compared to … matched workers, while in private firms, informal workers have consistently higher overeducation wage penalties than formal …
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overeducation implying a loss of human capital for individuals and ineffective use of resources for the economy. To make informed … decisions, policymakers need to understand how different types of workers and firms are affected by overeducation and skill …
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Sicherman-Galor hypothesis, which predicts that overeducation is a temporary condition from a worker's perspective associated …
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