in: Current Issues in Turkish Economy, Mahmut Tekçe,Çağlar Yurtseven, Editor, Peter Lang Publishing, Inc., Berlin, pp.25-44, 2019
This study uses the latest available 2017 Turkish Household Labor Force Surveys
and analyzes the incidence of and returns to overeducation by college major, where overeducation
indicates a position in which a worker’s education level is one standard deviation
above the average education level in her occupation. This chapter seeks to answer two
questions: Which college majors yield to greater incidence of overeducation? Do earnings
effects of being overeducated vary by college major? Two different specifications are
estimated to answer these questions. First, separate logit models for male and female are
estimated to see whether there are differences in the incidence of overeducation across
majors. The findings indicate that there are substantial differences. Most of the fields that
teach occupation-specific skills are observed not to yield high incidence of overeducation.
In addition, it is found that likelihood of overeducation decreases by age both for male and
female. Second, conditional earnings functions are estimated using quantile regressions to
see whether earnings differences of being overeducated exist and vary by college major. The
results reveal that there are earnings penalties of being overeducated and different college
majors lead to strikingly different earnings losses of being overeducated.