an article by Seamus McGuinness (Trinity College, Dublin; IZA) Konstantinos Pouliakas (The European Centre for the Development of Vocational Education (CEDEFOP); The University of Aberdeen; IZA) and Paul Redmond (Trinity College Dublin) published in Journal of Economic Surveys Volume 32 Issue 4 (September 2018)
Abstract
The term skills mismatch is very broad and can relate to many forms of labour market friction, including vertical mismatch, skill gaps, skill shortages, field of study (horizontal) mismatch and skill obsolescence.
In this paper, we provide a clear overview of each concept and discuss the measurement and inter‐relatedness of different forms of mismatch.
We present a comprehensive analysis of the current position of the literature on skills mismatch and highlight areas which are relatively underdeveloped and may warrant further research. Using data from the European Skills and Jobs Survey, we assess the incidence of various combinations of skills mismatch across the EU.
Finally, we review the European Commission's country‐specific recommendations and find that skills mismatch, when referring to underutilized human capital in the form of overeducation and skills underutilization, receives little policy attention. In cases where skills mismatch forms part of policy recommendations, the policy advice is either vague or addresses the areas of mismatch for which there is the least available evidence.
Showing posts with label overeducation. Show all posts
Showing posts with label overeducation. Show all posts
Friday, 28 September 2018
Wednesday, 9 November 2016
The changing graduate labour market: analysis using a new indicator of graduate jobs
an article by Francis Green and Golo Henseke (LLAKES Centre, UCL Institute of Education) published in IZA Journal of Labor Policy Volume 5 (2016)
Abstract
This paper examines differentiation in the recent evolving graduate labour market in Britain. Using a novel statistically derived indicator of graduate jobs, based on job skill requirements in three-digit occupations obtained from the British Skills and Employment Survey series, we analyse trends in the labour market between 1997/2001 and 2006/2012.
The indicator performs better than other indicators in validation tests, could be applied flexibly in other contexts, and is available in the Additional file 1.
We find that the massive influx of graduates into the labour force has been absorbed with no increase in overeducation. However, the returns to graduation have become more dispersed, with those at the upper quartile of the residual distribution increasing, while those at the lowest quartile have fallen.
The wage gap between matched and overeducated graduates increased by 11 log points.
Using the British Household Panel Study, we find that the persistence of overeducation status did not change but for non-employed male graduates moving into employment, the chances of entering a graduate job decreased.
JEL Classification: J21, J24, J3
Full text (HTML)
Abstract
This paper examines differentiation in the recent evolving graduate labour market in Britain. Using a novel statistically derived indicator of graduate jobs, based on job skill requirements in three-digit occupations obtained from the British Skills and Employment Survey series, we analyse trends in the labour market between 1997/2001 and 2006/2012.
The indicator performs better than other indicators in validation tests, could be applied flexibly in other contexts, and is available in the Additional file 1.
We find that the massive influx of graduates into the labour force has been absorbed with no increase in overeducation. However, the returns to graduation have become more dispersed, with those at the upper quartile of the residual distribution increasing, while those at the lowest quartile have fallen.
The wage gap between matched and overeducated graduates increased by 11 log points.
Using the British Household Panel Study, we find that the persistence of overeducation status did not change but for non-employed male graduates moving into employment, the chances of entering a graduate job decreased.
JEL Classification: J21, J24, J3
Full text (HTML)
Friday, 17 August 2012
Educational qualifications mismatch in Europe: Is it demand or supply driven?
an working paper by Emanuela Ghignoni and Alina Verashchagina published by the Sapienza University of Rome
Abstract
Most papers dealing with individual overeducation risks focus on labour supply characteristics and workers behaviour.
On the other hand, only few studies consider labour demand characteristics and technological change.
In this paper we analyse the influence of both demand and supply factors on educational mismatch in a set of ten European countries. Our hypothesis, confirmed by results obtained using ordered probit model with sample selection, is that demand factors generally play a major role in reducing educational mismatch in technologically more advanced countries, whereas supply factors are more important in countries that are lagging behind in the international division of labour.
At the same time, important cross-country and gender differences have been identified in the way the demand/supply factors operate. All this calls for the fine-tuning of policies aimed to tackle the problem of educational mismatch.
Apparently, EPL does not appear either to hinder technological development, nor increase overeducation.
Full text (PDF 45pp)
JEL classification: I2, J24, C35
Abstract
Most papers dealing with individual overeducation risks focus on labour supply characteristics and workers behaviour.
On the other hand, only few studies consider labour demand characteristics and technological change.
In this paper we analyse the influence of both demand and supply factors on educational mismatch in a set of ten European countries. Our hypothesis, confirmed by results obtained using ordered probit model with sample selection, is that demand factors generally play a major role in reducing educational mismatch in technologically more advanced countries, whereas supply factors are more important in countries that are lagging behind in the international division of labour.
At the same time, important cross-country and gender differences have been identified in the way the demand/supply factors operate. All this calls for the fine-tuning of policies aimed to tackle the problem of educational mismatch.
Apparently, EPL does not appear either to hinder technological development, nor increase overeducation.
Full text (PDF 45pp)
JEL classification: I2, J24, C35
Saturday, 15 August 2009
Overeducation and the skills of UK graduates
an article by Arnaud Chevalier (Royal Holloway University of London) and Joanne Lindley (University of Sheffield) published in Journal of the Royal Statistical Society: Series A (Statistics in Society) Volume 172 Issue 2 (2009)
Abstract
During the early 1990s the proportion of a cohort entering higher education in the UK doubled over a short period of time. The paper investigates the effect of the expansion on graduates’ early labour market attainment, focusing on overeducation. We define overeducation by combining occupation codes and a self-reported measure for the appropriateness of the match between qualification and the job. We therefore define three groups of graduates: matched, apparently overeducated and genuinely overeducated. This measure is well correlated with alternative definitions of overeducation. Comparing pre- and post-expansion cohorts of graduates, we find with this measure that the proportion of overeducated graduates has doubled, even though overeducation wage penalties have remained stable. We do not find that type of institution affects the probability of genuine overeducation. Apparently overeducated graduates are mostly indistinguishable from matched graduates, whereas genuinely overeducated graduates principally lack non-academic skills and suffer a large wage penalty. Individual unobserved heterogeneity differs between the three groups of graduates but controlling for it does not alter these conclusions.
Abstract
During the early 1990s the proportion of a cohort entering higher education in the UK doubled over a short period of time. The paper investigates the effect of the expansion on graduates’ early labour market attainment, focusing on overeducation. We define overeducation by combining occupation codes and a self-reported measure for the appropriateness of the match between qualification and the job. We therefore define three groups of graduates: matched, apparently overeducated and genuinely overeducated. This measure is well correlated with alternative definitions of overeducation. Comparing pre- and post-expansion cohorts of graduates, we find with this measure that the proportion of overeducated graduates has doubled, even though overeducation wage penalties have remained stable. We do not find that type of institution affects the probability of genuine overeducation. Apparently overeducated graduates are mostly indistinguishable from matched graduates, whereas genuinely overeducated graduates principally lack non-academic skills and suffer a large wage penalty. Individual unobserved heterogeneity differs between the three groups of graduates but controlling for it does not alter these conclusions.
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