Overeducation Factors and Its Return in Iran

Document Type : Research Paper


1 Associate Professor, University of Bu-Ali Sina

2 Assistant Professor, Department of Economics, University of Bu-Ali Sina

3 Master of Art, Department of Economics, University of Bu-Ali Sina


In the recent decade, supply of labour force has increased which may causes the
overeducation. Overeducation is potentially costly for any economy. In this study,
we examine the effective factors on overeducation, undereducation and returns of
years of schooling, by using the mean realized match method, over ISCO
classification data from household socio-economic survey in year 2003 using
Logit,Mincer and ORU model. We found that in the mincer model returns of every
years of education is equal to 8.5% and in ORU model Retuns of required education
11.5%, returns of overeducation 9.9% and also retuns of undereducation is -3.55%.


  • Receive Date: 22 December 2012
  • Revise Date: 06 July 2014
  • Accept Date: 09 February 2014
  • First Publish Date: 09 February 2014