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Educational Mismatches, Wages and Economic Growth: A Causal Analysis for the French Case since 1980

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  • Jean-Pascal Guironnet
  • Magali Jaoul-Grammare

Abstract

In the last two decades, France has experienced an increase in mismatches between education and work. This article studies twenty two years of French productivity to highlight the causes and effects of overeducation on the employee wages and the national income. From the INSEE and Cereq data, this analysis shows a positive effect in the short term on wages of the least qualified and overeducated worker. Furthermore, overeducation phenomenon does not penalize the higher graduates. Paradoxically, if it is always profitable for individuals to increase their education investment; in term of growth, overeducation of the higher graduates produce an unfavourable short term effect on GDP.

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2007-03.pdf
File Function: First version, 2007
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Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 07-03.

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Length: 14 pages
Date of creation: Apr 2007
Date of revision: Apr 2007
Handle: RePEc:lam:wpaper:07-03

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  1. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-36, July.
  2. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
  3. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
  4. Nachum Sicherman, 1987. "Over-Education in the Labor Market," University of Chicago - George G. Stigler Center for Study of Economy and State 48, Chicago - Center for Study of Economy and State.
  5. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
  6. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
  7. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
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