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

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  • Stephan Kampelmann
  • François Rycx

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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Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 12-038.

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Length: 33 p.
Date of creation: 19 Dec 2012
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Publication status: Published by:
Handle: RePEc:sol:wpaper:2013/135592

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Keywords: Educational mismatch; Productivity; Linked panel data; GMM;

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Cited by:
  1. Hartog, Joop & Sattinger, Michael, 2012. "Nash Bargaining and the Wage Consequences of Educational Mismatches," IZA Discussion Papers 7025, Institute for the Study of Labor (IZA).
  2. Agustí Segarra & Mercedes Teruel & Miquel Angel Bove, 2014. "A territorial approach to R&D subsidies: Empirical evidence for Catalonian firms," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2014-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Sep 2014.
  3. Peter Cappelli, 2014. "Skill Gaps, Skill Shortages and Skill Mismatches: Evidence for the US," NBER Working Papers 20382, National Bureau of Economic Research, Inc.
  4. Antonio Di Paolo & Ferran Mañé, 2014. "Are we wasting our talent? Overqualification and overskilling among PhD graduates," Working Papers, Xarxa de Referència en Economia Aplicada (XREAP) XREAP2014-06, Xarxa de Referència en Economia Aplicada (XREAP), revised Jun 2014.
  5. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.

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