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  • In this paper we investigate the effects of excessive and limited schooling on the individuals’ earnings in Cyprus. This important issue has not yet been tested analytically for Cyprus due to a dearth of individual level data. Using the conceptual framework of over- under- and adequate education we find that overeducated individuals still receive a positive return for their surplus schooling whereas the undereducated receive a negative return on their earnings for the deficit years of schooling. Additionally, using a logit model we tested whether being overeducated increases the probability of being unemployed under periods of economic crisis. We find statistically significant evidence that individuals with surplus schooling are more likely to lose their jobs while undereducated individuals are less likely to become unemployed. This might be due to the lower reservation wage of the undereducated relative to their overeducated counterparts. Consequently employers do not find it profitable to employ overeducated individuals during hard time such as the current global downturn. (xsd:string)
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  • 2014 (xsd:gyear)
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  • 2014 (xsd:gyear)
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  • Overeducation in Cyprus (xsd:string)
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