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

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  • Kampelmann, Stephan

    ()
    (Free University of Brussels)

  • Rycx, Francois

    ()
    (Free University of Brussels)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7093.

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Length: 34 pages
Date of creation: Dec 2012
Date of revision:
Publication status: published in: Economics of Education Review, 2012, 31 (6), 918-931
Handle: RePEc:iza:izadps:dp7093

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Keywords: linked panel data; productivity; educational mismatch; GMM;

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Cited by:
  1. Joop Hartog & Michael Sattinger, 2012. "Nash Bargaining and the Wage Consequences of Educational Mismatches," Tinbergen Institute Discussion Papers 12-129/V, Tinbergen Institute.
  2. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.
  3. Antonio Di Paolo & Ferran Mañé, 2014. "Are we wasting our talent? Overqualification and overskilling among PhD graduates," Working Papers XREAP2014-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2014.

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