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Education-occupation mismatch in Turkish labor market

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  • Filiztekin, Alpay

Abstract

There is a consensus that one of the most important ingredients for high and sustainable growth is human capital accumulation. Yet, a different strand of literature argues that there are some frictions in the labor markets of most countries that result in possible education-occupation mismatches, and consequently inefficiencies. Despite a significant amount of research using data from advanced economies there are very few studies on developing economies. Considering that human capital is scarce in these countries, whether it is efficiently allocated is arguably relatively more important. This paper using data from two different years examines the incidence of overeducation in Turkey. The findings show that there is a significant amount of over- and undereducated workers, and they are paid significantly less than those with the same level of education but working in jobs that require education levels that match their own. The magnitude of the incidence and the impact of mismatches on wages are, however, not too different than in most developed economies.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35123.

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Date of creation: 2011
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Handle: RePEc:pra:mprapa:35123

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Keywords: human capital; overeducation; returns to schooling; Turkey;

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  1. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, Elsevier, vol. 19(2), pages 149-158, April.
  2. Mortensen, D. T. & Vishwanath, T., 1995. "Personal contacts and earnings: It is who you know!," Labour Economics, Elsevier, Elsevier, vol. 2(1), pages 103-104, March.
  3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  4. Peter Gottschalk & Michael Hansen, 1999. "Is the Proportion of College Workers in 'Non-College' Jobs Increasing?," Boston College Working Papers in Economics, Boston College Department of Economics 429, Boston College Department of Economics, revised 20 Feb 2001.
  5. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(1), pages 169-92, February.
  6. Duncan, Greg J. & Hoffman, Saul D., 1981. "The incidence and wage effects of overeducation," Economics of Education Review, Elsevier, Elsevier, vol. 1(1), pages 75-86, February.
  7. Kiker, B. F. & Santos, Maria C. & de Oliveira, M. Mendes, 1997. "Overeducation and undereducation: Evidence for Portugal," Economics of Education Review, Elsevier, Elsevier, vol. 16(2), pages 111-125, April.
  8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(5), pages 972-90, October.
  9. Frank, Robert H, 1978. "Why Women Earn Less: The Theory and Estimation of Differential Overqualification," American Economic Review, American Economic Association, American Economic Association, vol. 68(3), pages 360-73, June.
  10. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  11. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
  12. Quinn, Michael A. & Rubb, Stephen, 2006. "Mexico's labor market: The importance of education-occupation matching on wages and productivity in developing countries," Economics of Education Review, Elsevier, Elsevier, vol. 25(2), pages 147-156, April.
  13. Tansel, Aysit & Bircan, Fatma, 2010. "Wage Inequality and Returns to Education in Turkey: A Quantile Regression Analysis," IZA Discussion Papers 5417, Institute for the Study of Labor (IZA).
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