Abstract – This paper estimates the effects of undereducation and overeducation on labor earnings in Brazil. The empirical analysis employs longitudinal data and information provided by job analysts about the schooling required for each occupation, the latter of which is used to classify workers as undereducated, overeducated, or adequately matched. Findings from Brazil do not differ from those reported for developed countries. Even when taking into account individuals’ fixed effects, evidence indicates that one more year of surplus schooling increases labor earnings, but less than an additional year of required schooling. Undereducated workers earn more than adequately matched individuals with the same educational level, but less than those adequately matched in similar occupations.
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