Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295821 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16798
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We assess the hypothesis that declining intergenerational economic mobility in Norway is attributable to a rising signaling value of education accompanied by more overeducation particularly among upperclass offspring. We identify five empirical facts that together point in this direction: • The educational earnings premium has risen, but only through the extensive (employment) margin. • The earnings premium has increased more when education is measured as years corresponding to completed degrees than when measured as time actually invested. • Both educational attainment and the labor market's skill-requirements (as predicted by the occupational distribution) have increased, but attainment has risen faster than requirements such that the incidence of overeducation has increased. • There is a steep positive social gradient in overeducation: Overeducation is more frequent and has risen faster among offspring in upper-class families. • There is a steep negative social gradient in non- employment: Non-employment is more frequent and has risen faster among offspring in lower-class families.
Subjects: 
overeducation
intergenerational mobility
returns to education
signaling
JEL: 
I21
I26
J24
J62
Document Type: 
Working Paper

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