Over Education and Gender Wage Gap: Evidence from Iran's Labor Market

Document Type : Research Paper

Authors

Faculty of Management and Economics, Sharif University of Technology, Tehran, Iran.

10.22059/jte.2025.380149.1008926

Abstract

Education is a key factor influencing wages in the labor market. While higher education typically enhances earnings, over-education—holding qualifications exceeding job requirements—can reduce income. This effect differs by gender and may contribute to the gender wage gap. Using data from Iran’s 2017 and 2022 Household Income and Expenditure Surveys (1396 and 1401 in the Iranian calendar), this study examines how over-education affects the gender wage gap. The analysis employs the realized matches method to identify over-education and the Oaxaca–Blinder decomposition to assess wage disparities. Results reveal that being female negatively affects wages in both public and private sectors, with a more pronounced disadvantage in the private sector. Additionally, over time, the gender wage gap has grown more severe among over-educated workers compared to those with education matching their job requirements. In 2017, wage discrimination against women was less pronounced among over-educated individuals than among their matched-education counterparts; however, by 2022, the trend reversed, with over-educated women facing heightened wage discrimination.

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References

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Journal of Economic Research (Tahghighat- E- Eghtesadi)
Volume 60, Issue 1
June 2025
Pages 927-959

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History

  • Receive Date: 30 July 2024
  • Revise Date: 01 February 2025
  • Accept Date: 17 July 2025

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