This chapter evaluates empirical methodologies that relate to the measurement of educational mismatch and estimation of earning regressions. The realised matches method and objective method are used to show evidence of the incidence of educational mismatch among wage workers in the Ghana labour market and their effects on earnings. We use micro data from the recent 2012/13 Ghana Living Standards Survey. The results indicate that each method produces different incidences of educational mismatch, although the associated returns to over and undereducation are similar. Our findings from OLS selectivity-corrected regressions highlight wage premium for workers with excess years of schooling than is required for their jobs, while a wage penalty is observed for workers with fewer years of schooling than is required for their jobs.
|Handbooks of Research Methods in Management
|Edward Elgar Publishing