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The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data

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  • Stephan Kampelmann
  • François Rycx

Abstract

We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: i) a higher level of required education exerts a significantly positive influence on firm productivity, ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and iii) additional years of under-education (among young workers) are detrimental for firm productivity.

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Paper provided by ULB -- Universite Libre de Bruxelles in its series DULBEA Working Papers with number 12-05.

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Length: 43 p.
Date of creation: 19 Dec 2012
Date of revision:
Publication status: Published by:
Handle: RePEc:dul:wpaper:2013/135601

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Keywords: Educational mismatch; Productivity; Linked panel data; GMM;

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Cited by:
  1. Hartog, Joop & Sattinger, Michael, 2012. "Nash Bargaining and the Wage Consequences of Educational Mismatches," IZA Discussion Papers 7025, Institute for the Study of Labor (IZA).
  2. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.

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