The Relation between the Wage, Job-related Training and the Quality of the Match between Occupations and the Types of Education
AbstractThe aim of the paper is twofold. In the first place, to find an explanation for the mismatch phenomena which can be found on the labour market by emphasising the nontransparency of the labour market. In the second place, to derive an objective mismatch measure, which enables to investigate the quality of the match between occupations and types of education and to find that particular type of education which has a comparative advantage in the occupation concerned. The result is a theoretical model in which concave earnings-training profiles are derived. Initial wages indicate the quality of the match. Training is used to decrease the mismatch between acquired and required skills. By estimating earnings function by occupational level and occupational field the theoretical framework has been tested empirically. The hypothesis that the earnings-tenure profile is concave can be confirmed by the estimates. Furthermore, the estimates of the mismatch measure yield attractive results, especially concerning the quality of the match between occupational and educational levels. Finally, estimating a training function confirms the hypothesis that training efforts are positively related to the degree of mismatch. So, it may be concluded that the approach which has been developed in this paper yields a useful mismatch measure.
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Bibliographic InfoPaper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 003.
Date of creation: 1996
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
education; training and the labour market;
Other versions of this item:
- Eijs,P.,van & Heijke,H., 1996. "The Relation between the Wage, Job-related Training and the Quality of the Match between Occupations and the Types of Education," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
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