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Does Over-education Influence French Economic Growth?

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  • Magali Jaoul-Grammare

    ()
    (BETA-CNRS)

  • Jean-Pascal Guironnet

    ()
    (CREUSET)

Abstract

In the last two decades, France has experienced an increase in mismatches between education and work. This article studies twenty two years of French productivity to highlight the causes and effects of over-education on the employee wages and the national income. From the INSEE and Cereq data, this analysis shows a positive effect in the short term on wages of the least qualified and overeducated worker. Furthermore, over-education phenomenon does not penalize the higher graduates. Paradoxically, if it is always profitable for individuals to increase their education investment; in term of growth, over-education of the higher graduates produce an unfavourable short term effect on GDP.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P66.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 1190-1200

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Handle: RePEc:ebl:ecbull:eb-09-00233

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Keywords: causality; growth; overeducation;

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  1. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
  2. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, Econometric Society, vol. 64(4), pages 813-36, July.
  3. Tsang, Mun Chiu, 1987. "The impact of underutilization of education on productivity: A case study of the U.S. Bell companies," Economics of Education Review, Elsevier, Elsevier, vol. 6(3), pages 239-254, June.
  4. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, Elsevier, vol. 22(9), pages 1325-1343, September.
  5. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, Elsevier, vol. 2(2), pages 111-120, July.
  6. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, Econometric Society, vol. 48(1), pages 1-48, January.
  7. Rubb, Stephen, 2003. "Overeducation: a short or long run phenomenon for individuals?," Economics of Education Review, Elsevier, Elsevier, vol. 22(4), pages 389-394, August.
  8. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 1(1), pages 19-46, January.
  9. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, American Economic Association, vol. 74(2), pages 79-83, May.
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