Journal Article

No. 2007-13 | November 13, 2007 (Version 2: October 01, 2008)
Wage Dispersion, Over-Qualification, and Reder Competition PDF Icon

Abstract

The expansion of higher education in the Western countries has been accompanied by a marked widening of wage differentials and increasing over-qualification. While the increase in wage differentials has been attributed to skill-biased technological change that made advanced skills scarce, this explanation does not fit well with the observed increase in over-qualification which suggests that advanced skills are in excess supply. By “Reder-competition” I refer to the simultaneous adjustment of wage offers and hiring standards in response to changing labor market conditions. I present a simple model of Reder competition that depicts wages as driven by labor heterogeneity, rather than scarcity. The mechanism may give rise to a simultaneous increase in wage differentials and over-qualification.

Data Set

Data sets for articles published in "Economics" are available at Dataverse. Please have a look at our repository.

The data set for this article can be found at: http://hdl.handle.net/1902.1/13663

JEL Classification

D43 J31 J63

Versions

Citation

Ekkehart Schlicht (2007). Wage Dispersion, Over-Qualification, and Reder Competition. Economics: The Open-Access, Open-Assessment E-Journal, 1 (2007-13): 1—22 (Version 2). http://dx.doi.org/10.5018/economics-ejournal.ja.2007-13

Assessment

Downloads: 6588 (Journalarticle: 3873, Discussionpaper: 2715)
external link Search this article at Google Scholar



Comments and Questions


Ekkehart Schlicht - Revision Report
October 01, 2008 - 10:59

see attached file