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Too Many Graduates? A Theory Of (Efficient) Educational Mismatch And Evidence From A Quasi-Natural Experiment

Author

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  • Patrizia Ordine
  • Giuseppe Rose

    (Dipartimento di Economia, Statistica e Finanza, Università della Calabria)

Abstract

This paper analyzes the process driving graduate workers in undergraduate jobs. Micro and macro perspectives are considered so that the interrelationships between individual mismatch and over-education at the aggregate level are analyzed. The theoretical model highlights that individual mismatch does not necessarily imply that the share of graduates exceeds what is optimally required at the aggregate level. The empirical investigation tests to what extent the individual probability of mismatch is related to the availability of graduates in the labor market. A structural estimation is implemented using a quasi-natural experiment ideally provided by an exogenous expansion of higher education that took place in some Italian regions in the mid ?'90s. Difference-in-Differences models show that in this country an increase in the supply of graduates has actually reduced the individual probability of mismatch which is an effect rationalized by the theory.

Suggested Citation

  • Patrizia Ordine & Giuseppe Rose, 2014. "Too Many Graduates? A Theory Of (Efficient) Educational Mismatch And Evidence From A Quasi-Natural Experiment," Working Papers 201409, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
  • Handle: RePEc:clb:wpaper:201409
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    References listed on IDEAS

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    1. Nader Habibi & GholamReza Keshavarz Haddad, 2016. "Why the Youth Are so Eager for Academic Education? Evidence from Iran's Labor Market," Working Papers 105, Brandeis University, Department of Economics and International Businesss School.

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    More about this item

    Keywords

    Overeducation; mismatch; matching models; difference-in-differences;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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