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Jacobs, V., Rycx, F., & Volral, M. (2022). Does Over-Education Raise Productivity and Wages Equally? The Moderating Role of Workers’ Origin and Immigrants’ Background (Discussion Paper Series No. 15074). IZA—Institute of Labor Economics.
https://doi.org/10.2139/ssrn.4114619

has been cited by the following article:

• TITLE: Effects of Downgrading on Wages: The Case of Young Graduates in the Republic of Congo

  AUTHORS: Oliver Lauche Assioro, Estelle Nkale Bougha Obouna, Mathias Marie Adrien Ndinga

  KEYWORDS: Overeducation, Undereducation, Youths, Congo

  JOURNAL NAME: Modern Economy, Vol.13 No.10, October 14, 2022

  ABSTRACT: The purpose of this paper is to analyze the effects of undereducation and overeducation on wages. To that end, we used data from the Transition to Employment Survey (ETVA-2015). With these data, we first proceeded to identify the downgraded individuals by the MCA. Then, knowing that the unemployed may have a reservation wage, which will bias our estimates, we proceeded to estimate a two-stage model to correct for this selection bias. Using this model, we found that downgrading determines workers’ wages. Undereducation improves wages, while overeducation reduces them. Based on these results, we advocated that policymakers should promote more youth placement through employment agencies and improve the supply of training in order to effectively meet the needs of firms.