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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.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 59.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:59

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Keywords: over-education; skill under-utilisation; wages; on-the-job search;

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References

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  1. Luigi Pistaferri, 1999. "Informal Networks in the Italian Labor Market," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 355-375, December.
  2. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, vol. 1(1), pages 75-86, February.
  3. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
  4. Cohn, Elchanan & Ng, Ying Chu, 2000. "Incidence and wage effects of overschooling and underschooling in Hong Kong," Economics of Education Review, Elsevier, vol. 19(2), pages 159-168, April.
  5. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
  6. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
  7. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April.
  8. Rubb, S., 2003. "Overeducation in the labor market: a comment and re-analysis of a meta-analysis," Economics of Education Review, Elsevier, vol. 22(6), pages 621-629, December.
  9. 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.
  10. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
  11. Peter Dolton, 2001. "Over education in the graduate labour market: Some evidence from alumni data," CEE Discussion Papers 0009, Centre for the Economics of Education, LSE.
  12. Giorgio Di Pietro, 2002. "The Connection Between Access to University and Net Social Welfare Expenditure in Southern Italy," Education Economics, Taylor & Francis Journals, vol. 10(1), pages 25-39.
  13. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
  14. F Green & Steven McIntosh & Anna Vignoles, 1999. "Overeducation and Skills - Clarifying the Concepts," CEP Discussion Papers dp0435, Centre for Economic Performance, LSE.
  15. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
  16. Francis Green & Steven McIntosh, 2007. "Is there a genuine under-utilization of skills amongst the over-qualified?," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 427-439.
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Citations

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Cited by:
  1. Kostas Mavromaras & Seamus Mcguinness & Nigel O'Leary & Peter Sloane & Yi King Fok, 2010. "The Problem Of Overskilling In Australia And Britain," Manchester School, University of Manchester, vol. 78(3), pages 219-241, 06.
  2. Boudarbat, Brahim & Chernoff, Victor, 2009. "The Determinants of Education-Job Match among Canadian University Graduates," IZA Discussion Papers 4513, Institute for the Study of Labor (IZA).
  3. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.
  4. Gianni Betti & Antonella D’Agostino & Laura Neri, 2011. "Educational Mismatch of Graduates: a Multidimensional and Fuzzy Indicator," Social Indicators Research, Springer, vol. 103(3), pages 465-480, September.
  5. Humburg Martin & Grip Andries de & Velden Rolf van der, 2012. "Which skills protect graduates against a slack labour market?," Research Memorandum 002, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  6. Domadenik, Polona & Farčnik, DaÅ¡a & Pastore, Francesco, 2013. "Horizontal Mismatch in the Labour Market of Graduates: The Role of Signalling," IZA Discussion Papers 7527, Institute for the Study of Labor (IZA).
  7. Sandra Nieto, 2014. "“Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data”," AQR Working Papers 201406, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2014.
  8. Croce, Giuseppe & Ghignoni, Emanuela, 2011. "Overeducation and spatial flexibility in Italian local labour markets," MPRA Paper 29670, University Library of Munich, Germany.
  9. Chantal Nielsen, 2011. "Immigrant over-education: evidence from Denmark," Journal of Population Economics, Springer, vol. 24(2), pages 499-520, April.
  10. L. Cattani & G. Guidetti & G. Pedrini, 2014. "Assessing the incidence and wage effects of overeducation among Italian graduates using a new measure for educational requirements," Working Papers wp939, Dipartimento Scienze Economiche, Universita' di Bologna.
  11. Galasi, Péter, 2009. "A túl- és az alulképzés bérhozama 25 európai országban
    [Returns for over-education and under-education for 25 European countries]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 197-215.
  12. Emanuela Ghignoni, 2011. "Young workers‟ overeducation and cohort effects in “P.I.G.S.†countries versus the Netherlands: a pseudo-panel analysis," Working Papers 147, University of Rome La Sapienza, Department of Public Economics.
  13. Simona Iammarino & Elisabetta Marinelli, 2012. "Education-Job (Mis)Matching And Interregional Migration: Italian University Graduates’ Transition To Work," Working Papers 8, Birkbeck Centre for Innovation Management Research, revised Sep 2012.
  14. Francesco Ferrante, 2014. "Great expectations The unintended consequences of educational choices," Working Papers 67, AlmaLaurea Inter-University Consortium.
  15. Giuseppe Lucio Gaeta, 2013. "Was it worth it? An empirical analysis of over-education among Ph.D. recipients in Italy," Working Papers 1302, c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
  16. Ferrari, Filippo, 2010. "Skill mismatch e profili professionali: il settore turistico-alberghiero
    [Skill mismatch in tourism and hotel sector]
    ," MPRA Paper 22363, University Library of Munich, Germany.
  17. Peter Galasi, 2008. "The effect of educational mismatch on wages for 25 countries," Budapest Working Papers on the Labour Market 0808, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  18. Sandra Nieto, 2014. "“Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data”," IREA Working Papers 201411, University of Barcelona, Research Institute of Applied Economics, revised Mar 2014.
  19. Isabelle Chort, 2013. "Migrant network and immigrants’ occupational mismatch," Working Papers DT/2013/04, DIAL (Développement, Institutions et Mondialisation).
  20. Lourdes Badillo Amador & Angel López Nicolás & Luis E. Vila, 2008. "The Consequences on Job Satisfaction of Job-Worker Educational and Skill Mismatches in the Spanish Labour Market: a Panel Analysis," Working Papers 2008-32, FEDEA.

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