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The impact of educational mismatch on firm productivity: Evidence from linked panel data

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  • Kampelmann, Stephan
  • Rycx, François

Abstract

We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer–employee panel data for Belgium covering the period 1999–2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: (i) a higher level of required education exerts a significantly positive influence on firm productivity, (ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and (iii) additional years of under-education (among young workers) are detrimental for firm productivity.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 31 (2012)
Issue (Month): 6 ()
Pages: 918-931

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Handle: RePEc:eee:ecoedu:v:31:y:2012:i:6:p:918-931

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: Educational mismatch; Productivity; Linked panel data; GMM;

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Cited by:
  1. Hartog, Joop & Sattinger, Michael, 2012. "Nash Bargaining and the Wage Consequences of Educational Mismatches," IZA Discussion Papers 7025, Institute for the Study of Labor (IZA).
  2. Antonio Di Paolo & Ferran Mañé, 2014. "Are we wasting our talent? Overqualification and overskilling among PhD graduates," Working Papers XREAP2014-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2014.
  3. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.

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