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The labour market implications of job quality

University of British Columbia

This thesis takes the form of three essays about the labour market implications of job quality. In the first essay, I demonstrate, by analysing a two-type, two-period example, that high introductory wage offers can signal the quality of experience jobs. In this game, one type of firm - the “good” type - offers higher expected quality jobs. If this type is less likely to exit from the industry than the “bad’ type, it can increase expenditure on introductory wages without being mimicked, distinguishing it from its inferior. The game has many equilibria with these separating wages. In each, the introductory compensating differentials have the opposite sign to the usual case: higher expected quality jobs pay more, rather than less. In the second essay, I present Canadian evidence that tests and supports the theory of compensating differentials for a variety of job characteristics. The data used are from the National Survey of Class Structure and Labour Process in Canada (NSCS). These self-report data are preferable to the more conventional occupational-trait data; they provide information on individual jobs rather than averages across broad occupational categories and industries. In the third essay, I focus on the mismatch between the educational requirements of jobs and the educational attainments of workers. Using NSCS data, I find that the returns to over- and undereducation for males are sensitive to the level of required education. There is evidence of positive returns to overeducation for jobs that require a university bachelor’s degree; but, in general, the returns are insignificant. Undereducated workers are penalised in jobs with low educational requirements. For females, I find that the returns to over- and undereducation are insignificant for all levels of required education.

Thesis/Dissertation

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2009-06-05

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http://hdl.handle.net/2429/8815

Economics

University of British Columbia

UBCV

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