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Education and Skills Mismatch in the Italian Graduate Labour Market

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  • Di Pietro, Giorgio

    (University of Westminster)

  • Peter Urwin

Abstract

This paper focuses on education and skills mismatch amongst Italian graduates. Indicators for over and under-utilisation of education and under-utilisation of skills are included in a grouped data lognormal wage equation, allowing us to test a number of theories which 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 the formal requirements of a job, when compared to that associated with an employeeÕs perception of the job requirements. Our interpretation is that employers may be mis-specifying jobs as ÔgraduateÕ jobs in order to take advantage of an excess supply of graduates.

Suggested Citation

  • Di Pietro, Giorgio & Peter Urwin, 2003. "Education and Skills Mismatch in the Italian Graduate Labour Market," Royal Economic Society Annual Conference 2003 59, Royal Economic Society.
    • Handle: RePEc:ecj:ac2003:59
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    More about this item

    Keywords

    over-education; skill under-utilisation; wages; on-the-job search;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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