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Abstract

This paper examines the effects that martial status, having children in the home, and having young children has on a person’s likelihood of being over or under educated for their job. We classify a person overeducated if for example the mean level of education for their occupation is a bachelor’s degree, but they have a PhD then they are overeducated. The opposite is what undereducation is classified as, say a person with a bachelor’s degree is working at a job where the mean level of education is a PhD, then that person would be classified as undereducated. Then taking these new over and undereducation variables, they are put into another model to determine the effect they may have on a person’s income. We find that single people are more likely to be overeducated and single people with children are more likely to be both overeducated and undereducated. As for wage effects, being overeducated has a much stronger negative effect on wage than undereducation but result in a loss of income compared to a wellmatched person.

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