Bureaucracy, overschooling and credentials inflation

In this paper we investigate whether the amount and level of overschooling is higher in the private sector than in the public sector. We investigate differences in the rate of return on (over)schooling too. The idea is that within the public sector the wage and allocation process behaves more according to Thurow’s job-competition model or according to the view of the credentialists whereas in the private sector the wage and allocation process behaves more according to the neo-classical human capital model. These differences should result in different wage equations which if added up can explai... Mehr ...