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Table 11 Augmented log-wage regressions with heterogeneity types

From: The career prospects of overeducated Americans

  (1) (2) (3) (4)
  ln(HourlyWage) ln(HourlyWage) ln(HourlyWage) ln(HourlyWage)
Required education (years) 0.074*** (0.0081) 0.076*** (0.0090) 0.075*** (0.0074) 0.076*** (0.0102)
Schooling above required (years) 0.019* (0.0107) 0.015 (0.0101) 0.029*** (0.0088) 0.028** (0.0115)
Schooling below required (years) −0.062*** (0.0168) −0.060*** (0.0175) −0.064*** (0.0210) −0.063*** (0.0233)
Black 0.047 (0.0405) 0.050 (0.0428) 0.040 (0.0503) 0.041 (0.0425)
Hispanic 0.034 (0.0484) 0.030 (0.0575) 0.037 (0.0543) 0.036 (0.0462)
Female −0.099*** (0.0233) −0.100*** (0.0260) −0.097*** (0.0214) −0.097*** (0.0259)
Born in the USA −0.115* (0.0626) −0.114** (0.0553) −0.117* (0.0626) −0.116* (0.0649)
AFQTa 0.188*** (0.0376) 0.189*** (0.0391) 0.181*** (0.0370) 0.180*** (0.0349)
Rottes Scale in 1979 −0.006 (0.0057) −0.006 (0.0051) −0.006 (0.0057) −0.006 (0.0046)
Sociability in 1985 0.004 (0.0181) 0.005 (0.0166) 0.001 (0.0201) 0.001 (0.0161)
GED (no HS diploma) 0.018 (0.0872) 0.026 (0.1086) 0.015 (0.1085) 0.017 (0.0944)
Northeast 0.131*** (0.0332) 0.128*** (0.0286) 0.134*** (0.0319) 0.133*** (0.0277)
South 0.010 (0.0338) 0.004 (0.0246) 0.009 (0.0328) 0.008 (0.0294)
West 0.052** (0.0250) 0.052 (0.0367) 0.059* (0.0357) 0.059* (0.0351)
Unemployment rate 0.006 (0.0054) 0.005 (0.0070) 0.007 (0.0052) 0.007 (0.0068)
HH in SMSA 0.105*** (0.0342) 0.110*** (0.0375) 0.112*** (0.0377) 0.113*** (0.0351)
Tenure (1000 weeks) 0.152** (0.0593) 0.147*** (0.0551) 0.166*** (0.0562) 0.167*** (0.0636)
Work experience (1000 h) 0.039*** (0.0072) 0.041*** (0.0079) 0.043*** (0.0078) 0.044*** (0.0066)
Work experience2 (1000 h) −0.012*** (0.0024) −0.012*** (0.0025) −0.013*** (0.0023) −0.013*** (0.0021)
Number of jobs −0.061*** (0.0143) −0.062*** (0.0118) −0.060*** (0.0113) −0.060*** (0.0124)
Total unemp. (weeks) −0.002*** (0.0005) −0.001** (0.0006)     
Occupational hazards 0.054*** (0.0125) 0.051*** (0.0116) 0.049*** (0.0136) 0.049*** (0.0159)
Type 1 −0.120** (0.0566)    −0.033 (0.0587)   
Constant 1.161*** (0.2101) 1.129*** (0.2536) 1.321*** (0.2320) 1.321*** (0.2405)
Unemployed (t−1)      −0.112* (0.0572) −0.114* (0.0668)
Unemployed (t−2)      −0.051 (0.0432) −0.051 (0.0456)
Unemployed (t−3)      −0.013 (0.0383) −0.013 (0.0401)
Unemployed (t−4)      −0.033 (0.0561) −0.033 (0.0590)
Overeducated (t−1)      −0.060*** (0.0137) −0.062*** (0.0142)
Overeducated (t−2)      −0.048*** (0.0120) −0.050*** (0.0111)
Overeducated (t−3)      −0.041*** (0.0125) −0.044*** (0.0126)
Overeducated (t−4)      −0.030** (0.0144) −0.032** (0.0127)
Overeducated (t−1), spell ongoing      0.031 (0.0206) 0.030* (0.0180)
Overeducated (t−2), spell ongoing      0.012 (0.0261) 0.010 (0.0328)
Overeducated (t−3), spell ongoing      0.026 (0.0345) 0.026 (0.0408)
Overeducated (t−4), spell ongoing      0.011 (0.0530) 0.006 (0.0500)
Observations   3906   3906   3906   3906
  1. Model also includes controls for age, mother and father’s education level in 1979, a dummy for living with both parents in 1979, and a dummy for living in an urban area at the time of interview
  2. Model estimated on individuals with at least one overeducated spell, at least four years after labor market entry. Specifications (1) and (3) are estimated by Weighted Least Squares, using as weights the posterior type probabilities from the MPH model, and Specifications (2) and (4) are estimated by pooled OLS
  3. Unemployment rate (by region) corresponds to the annual unemployment rate for each Census region (BLS Local Area Unemployment Statistics data)
  4. Standard errors for specifications (1) and (3) are computed using bootstrap, with 50 replications
  5. aValues converted to Z-scores
  6. * p<0.10, ** p<0.05, *** p<0.01