| Summary: | 碩士 === 東吳大學 === 經濟學系 === 97 === This thesis analyzed the effect of overeducation (undereducation) on wages and tries to estimate roughly about the deadweight loss of overeducation by using the data sets “Taiwan Social Change Survey” in 1997 and 2002. The wage equations are estimated by both the ordinary least squares method and two-stage method to take into account the sample selectivity bias problem. In the existing literature, they usually assume that the full-time workers and part-time workers have the same wage equation except the constant term. This thesis estimates two wage equations one for full-time workers and the other for part-time workers and then tests the null hypothesis that the parameters of the two wage equations are the same by using chow test. The main conclusions are as follows: First, the null hypothesis method above is rejected. Therefore, it is justifiable to estimate the wage equations for full-time and part-time workers separately. Second, regardless of which estimation method is used, the marginal rate of return to education is positive and the marginal rate of return on excess years of schooling (overeducation) is significantly less than that on required years of schooling, it indicates that overeducation will have a deadweight loss (underutilization of resources) for an individual or the economy. Third, a rough point estimate of the deadweight loss of overeducation is at least 0.088% loss in wages for an overeducated workers and 0.042% loss in income for the whole economy.
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