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Education and skills mismatch in the Italian graduate labour market

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  • Giorgio Di Pietro
  • Peter Urwin

Abstract

This paper focuses on education and skills mismatch among Italian graduates. Indicators for over- and under-utilization of education and under-utilization of skills are included as explanatory factors in a wage equation, testing theories that could explain the effect of over-schooling on wages. We find little evidence to support assignment theory and also identify a relatively weak wage effect arising from educational mismatch associated with employers', as opposed to employees', perceptions of the job requirements. Our interpretation is that some employers have re-categorized jobs as requiring a degree, when they were previously filled by non-graduates, and many have not altered pay scales accordingly.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 1 ()
Pages: 79-93

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Handle: RePEc:taf:applec:v:38:y:2006:i:1:p:79-93

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References

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  1. Luigi Pistaferri, 1999. "Informal Networks in the Italian Labor Market," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 355-375, December.
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  7. Cohn, Elchanan & Ng, Ying Chu, 2000. "Incidence and wage effects of overschooling and underschooling in Hong Kong," Economics of Education Review, Elsevier, vol. 19(2), pages 159-168, April.
  8. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
  9. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
  10. Peter Dolton, 2001. "Over education in the graduate labour market: Some evidence from alumni data," CEE Discussion Papers 0009, Centre for the Economics of Education, LSE.
  11. Giorgio Di Pietro, 2002. "The Connection Between Access to University and Net Social Welfare Expenditure in Southern Italy," Education Economics, Taylor & Francis Journals, vol. 10(1), pages 25-39.
  12. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
  13. Hartog, Joop & Oosterbeek, Hessel, 1988. "Education, allocation and earnings in the Netherlands: 0verschooling?," Economics of Education Review, Elsevier, vol. 7(2), pages 185-194, April.
  14. Francis Green & Steven McIntosh, 2007. "Is there a genuine under-utilization of skills amongst the over-qualified?," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 427-439.
  15. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
  16. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
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Citations

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Cited by:
  1. Gianni Betti & Antonella D’Agostino & Laura Neri, 2011. "Educational Mismatch of Graduates: a Multidimensional and Fuzzy Indicator," Social Indicators Research, Springer, vol. 103(3), pages 465-480, September.
  2. Sandra Nieto, 2014. "“Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data”," IREA Working Papers 201411, University of Barcelona, Research Institute of Applied Economics, revised Mar 2014.
  3. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.
  4. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers 145, University of Rome La Sapienza, Department of Public Economics.
  5. Humburg Martin & Grip Andries de & Velden Rolf van der, 2012. "Which skills protect graduates against a slack labour market?," Research Memorandum 002, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  6. Boudarbat, Brahim & Chernoff, Victor, 2009. "The Determinants of Education-Job Match among Canadian University Graduates," IZA Discussion Papers 4513, Institute for the Study of Labor (IZA).
  7. Kostas Mavromaras & Seamus McGuinness & Nigel O’Leary & Peter Sloane & Yin King Fok, 2007. "The Problem of Overskilling in Australia and Britain," Melbourne Institute Working Paper Series wp2007n33, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Chantal Nielsen, 2011. "Immigrant over-education: evidence from Denmark," Journal of Population Economics, Springer, vol. 24(2), pages 499-520, April.
  9. Giuseppe Lucio Gaeta, 2013. "Was it worth it? An empirical analysis of over-education among Ph.D. recipients in Italy," Working Papers 1302, c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
  10. Domadenik, Polona & Farčnik, DaÅ¡a & Pastore, Francesco, 2013. "Horizontal Mismatch in the Labour Market of Graduates: The Role of Signalling," IZA Discussion Papers 7527, Institute for the Study of Labor (IZA).
  11. Simona Iammarino & Elisabetta Marinelli, 2012. "Education-Job (Mis)Matching And Interregional Migration: Italian University Graduates’ Transition To Work," Management Working Papers 8, Birkbeck Department of Management, revised Sep 2012.
  12. Emanuela Ghignoni, 2011. "Young workers‟ overeducation and cohort effects in “P.I.G.S.†countries versus the Netherlands: a pseudo-panel analysis," Working Papers 147, University of Rome La Sapienza, Department of Public Economics.
  13. Lourdes Badillo Amador & Angel López Nicolás & Luis E. Vila, 2008. "The Consequences on Job Satisfaction of Job-Worker Educational and Skill Mismatches in the Spanish Labour Market: a Panel Analysis," Working Papers 2008-32, FEDEA.
  14. Peter Galasi, 2008. "The effect of educational mismatch on wages for 25 countries," Budapest Working Papers on the Labour Market 0808, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  15. Isabelle Chort, 2013. "Migrant network and immigrants’ occupational mismatch," Working Papers DT/2013/04, DIAL (Développement, Institutions et Mondialisation).
  16. Francesco Ferrante, 2014. "Great expectations The unintended consequences of educational choices," Working Papers 67, AlmaLaurea Inter-University Consortium.
  17. Ferrari, Filippo, 2010. "Skill mismatch e profili professionali: il settore turistico-alberghiero
    [Skill mismatch in tourism and hotel sector]
    ," MPRA Paper 22363, University Library of Munich, Germany.
  18. Galasi, Péter, 2009. "A túl- és az alulképzés bérhozama 25 európai országban
    [Returns for over-education and under-education for 25 European countries]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 197-215.
  19. Sandra Nieto, 2014. "“Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data”," AQR Working Papers 201406, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2014.

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