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The Relation between the Wage, Job-related Training and the Quality of the Match between Occupations and the Types of Education

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Author Info
Eijs,P.,van
Heijke,H. (ROA rm)

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Abstract

The 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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Publisher Info
Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 003.

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Date of creation: 1996
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Handle: RePEc:dgr:umaror:1996003

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Keywords: education; training and the labour market;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. 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. [Downloadable!] (restricted)
  2. Sloane, P J & Battu, H & Seaman, P T, 1999. "Overeducation, Undereducation and the British Labour Market," Applied Economics, Taylor and Francis Journals, vol. 31(11), pages 1437-53, November. [Downloadable!] (restricted)
  3. Howitt, Peter & McAfee, R Preston, 1987. "Costly Search and Recruiting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 89-107, February. [Downloadable!] (restricted)
  4. Hartog, Joop, 1985. "Earnings functions : Testing for the demand side," Economics Letters, Elsevier, vol. 19(3), pages 281-285. [Downloadable!] (restricted)
  5. Sattinger, Michael, 1975. "Comparative Advantage and the Distributions of Earnings and Abilities," Econometrica, Econometric Society, vol. 43(3), pages 455-68, May. [Downloadable!] (restricted)
  6. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June. [Downloadable!] (restricted)
  7. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October. [Downloadable!] (restricted)
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  8. Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Grip,A.,de & Heijke,H., 1998. "Beyond Manpower Planning: ROA's Labour Market Model and its Forecasts to 2002," Working Papers 006, Maastricht : ROA,Research Centre for Education and the Labour Market. [Downloadable!]
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