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Educational mismatch and unemployment scarring

Author

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  • Patrizia Ordine
  • Giuseppe Rose

Abstract

Purpose - – The purpose of this paper is to investigate educational mismatch and its interrelationships with unemployment duration. Design/methodology/approach - – The authors study unemployment histories of Italian workers using dependent competing risk models. The authors evaluate the impact of overeducation on wage using propensity score and treatment models. Findings - – The authors show that overeducated have longer unemployment spells than their well-matched peers. This evidence implies that when assessing the impact of overeducation on wages, the duration of joblessness should be taken into account to evaluate possible additional unemployment scarring effects. The authors show that when controlling for unemployment spell duration the wage effect of overeducation significantly increases of about 7 percent. This result is supported by improvements in the sensitivity analysis. Originality/value - – The findings are consistent with an interpretation of educational mismatch as a penalizing phenomenon in the individuals’ working life associated with long-term unemployment.

Suggested Citation

  • Patrizia Ordine & Giuseppe Rose, 2015. "Educational mismatch and unemployment scarring," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(5), pages 733-753, August.
    • Handle: RePEc:eme:ijmpps:v:36:y:2015:i:5:p:733-753
    DOI: 10.1108/IJM-03-2013-0048
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    Citations

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    Cited by:

    1. Akram Sh. Alawad & Fuad Kreishan & Mohammad Selim, 2020. "Determinants of Youth Unemployment: Evidence from Jordan," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 152-165.
    2. Sam, Vichet, 2018. "Impact of education-job mismatches on wage: The case of university graduates in Cambodia," MPRA Paper 110011, University Library of Munich, Germany.
    3. Muhammad Awaluddin & Fitriadi Fitriadi & Arfiah Busari & Dio Caisar Darma, 2021. "Contemporary Indonesian GDP: Context of Analysis at Unemployment, Labor Force and Poor People," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 7(4), pages 143-154, 12-2021.
    4. Patrizia Ordine & Giuseppe Rose, 2017. "Individual Mismatch and Aggregate Overeducation: Evidence from a Quasi-Natural Experiment," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(1), pages 1-23, March.
    5. David Boto-García & Marta Escalonilla, 2022. "University education, mismatched jobs: are there gender differences in the drivers of overeducation?," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(3), pages 861-902, October.
    6. Esposito, Piero & Scicchitano, Sergio, 2022. "Educational mismatch and labour market transitions in Italy: Is there an unemployment trap?," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 138-155.
    7. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
    8. Dyah S. Pritadrajati & Anggita C. M. Kusuma & Sweta C. Saxena, 2020. "A Non-Healing Wound: Lasting Consequences Of Unemployment And Informal Self-Employment: An Empirical Evidence From Indonesia," Working Papers WP/09/2020, Bank Indonesia.

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