Title: Overeducation and the Gender Pay Gap in Italy. A Double Selectivity Approach
Abstract: We use a large Italian data set (ISFOL-PLUS 2005-2014) to estimate the gender pay gap (GPG) among overeducated workers. We show that overeducation is an important driver of the GPG. This result holds when controlling for sample selection and endogeneity problems, too. Neglecting selectivity issues may lead to the conclusion that discrimination is the most important driver of the GPG. Yet, when accounting for self-selection and endogeneity bias overeducation is found to merely reflect unobserved differences in personal characteristics such as innate ability. The selection coefficients for both the participation and the overeducation decision allow explaining almost the entire GPG.
Publication Year: 2017
Publication Date: 2017-10-01
Language: en
Type: preprint
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