Resource title

Wage Dispersion and Overqualification as Entailed by Reder Competition

Resource image

image for OpenScout resource :: Wage Dispersion and Overqualification as Entailed by Reder Competition

Resource description

The expansion of higher education in theWestern countries has been accompanied by a marked widening of wage differentials and increasing overqualification. 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 overqualification 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 condition. I present a simple model of Reder competition that reproduces the simultaneous increase in wage differentials and overqualification in response to an increase in education.

Resource author

Ekkehart Schlicht

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17945

Resource license

Adapt according to the presented license agreement and reference the original author.