Overqualification signals a mismatch between jobs’ educational requirements and workers’ qualifications implying potential productivity losses at the macro and the micro level. This study explores how the family background of German graduates affects the probability to hold a job that does...

Using data covering a single cohort’s first 55 years of life, we show that most of the intergenerational elasticity of earnings (IGE) is explained by differences in: years of schooling, cognitive skills, investments of parental time and school quality, and family circumstances during...

In this paper, we decompose worldwide PISA mathematics and reading scores. While mathematics scores are still tilted towards boys, girls have a larger advantage in reading over boys. Girls’ disadvantage in mathematics is increasing over the distribution of talents. Our decomposition shows that...

Welfare caseloads in North America halved following reforms in the 1990s and 2000s. We study how this shift affected families by linking Canadian welfare records to tax returns, medical spending, educational attainment, and crime data. We find substantial and heterogeneous employment responses...

We study the impact of human capital and the level of education on the pollution-income relationship controlling for income inequality in 17 OECD countries. By applying an innovative approach to country grouping, based on the temporal evolution of income inequality and clustering techniques to...

We develop a classical macroeconomic model to examine the growth and distributional consequences of education. Contrary to the received wisdom, we show that human capital accumulation is not necessarily growth-inducing and inequality-reducing. Expansive education policies may foster growth and...

How skills acquired in vocational education and training (VET) affect wages and employment is not clear. We develop and estimate a search and matching model for workers with a VET degree. Workers differ in interpersonal, cognitive and manual skills, while firms require and value different...

This paper provides precise figures on the incidence and wage penalties of mismatching in Germany. We use the BIBB/BAuA Employment Survey 2006 to compute two different measures of person-to-job matching. A first measure indicates an educational (mis)match, i.e., whether a worker’s attained...

The aim of this paper is to measure the returns to human capital. We use a unique data set consisting of matched employer-employee information. Data on individuals’ human capital include a set of 26 tasks that capture the utilization of workers’ skills in a very detailed way. Thus, we can...

Large variation in the estimated income premium of occupational licensing can be found in the existing literature. I revisit the natural experimental design of a change in the German crafts regulation in 2004, which removed the traditional licensing requirement for self-employment in certain...