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The great Canadian training robbery: Evidence on the returns to educational mismatch

In this paper, I use data from the National Survey of Class Structure and Labour Process in Canada (NSCS) to estimate the returns to over and undereducation. I find that there are positive returns to overeducation for males in jobs that require a university bachelor’s degree; but for other levels of required education, the returns are insignificant. I also find evidence of lower pay for undereducated males in jobs with low education requirements. For females, the returns to over and undereducation are insignificant for all levels of required education.