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Optimal 'Mismatch' and Promotions

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  • Hersch, Joni

Abstract

Seeming 'mismatches,' in which workers are either under- or overqualified, are shown to be optimal. From the firm's point of view, although turnover will be positively related to overqualification, training costs will be inversely related to overqualification. Further, overqualified workers constitute a pool from which promotions are made. Workers enter seeming mismatches due to search and mobility costs and because of opportunities for promotion. Estimates using a unique data set indicate that workers who are overqualified at hire receive less training and more promotions and that workers overqualified for their current job are more likely to quit. Copyright 1995 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 33 (1995)
Issue (Month): 4 (October)
Pages: 611-24

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Handle: RePEc:oup:ecinqu:v:33:y:1995:i:4:p:611-24

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Cited by:
  1. Asplund, Rita & Lilja, Reija, 1998. "Labour Market Transitions in Finland. Does background matter?," Discussion Papers 660, The Research Institute of the Finnish Economy.
  2. Battu, H. & Belfield, C. R. & Sloane, P. J., . "Overeducation Among Graduates: A Cohort View," Working Papers 98-03, Department of Economics, University of Aberdeen.
  3. Kucel, Aleksander & Byrne, Delma, 2008. "Are Over-educated People Insiders or Outsiders? A Case of Job Search Methods and Over-education in UK," Papers WP258, Economic and Social Research Institute (ESRI).
  4. Jones, Melanie K. & Jones, Richard J. & Latreille, Paul L. & Sloane, Peter J., 2008. "Training, Job Satisfaction and Workplace Performance in Britain: Evidence from WERS 2004," IZA Discussion Papers 3677, Institute for the Study of Labor (IZA).
  5. Lourdes Badillo-Amador & Antonio García-Sánchez & Luis Vila, 2005. "Mismatches in the Spanish Labor Market: Education vs. Competence Match," International Advances in Economic Research, Springer, vol. 11(1), pages 93-109, March.
  6. Chris Doucouliagos & Phillip Hone & Mehmet Ulubasoglu, 2006. "Discrimination, Peformance and Career Progression in Australian Public Sector Labor Markets," Economics Series 2006_07, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.

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