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Does Over-education Influence French Economic Growth?

  • Magali Jaoul-Grammare

    ()

    (BETA-CNRS)

  • Jean-Pascal Guironnet

    ()

    (CREUSET)

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 over-education 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, over-education phenomenon does not penalize the higher graduates. Paradoxically, if it is always profitable for individuals to increase their education investment; in term of growth, over-education of the higher graduates produce an unfavourable short term effect on GDP.

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P66.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 1190-1200

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Handle: RePEc:ebl:ecbull:eb-09-00233
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  1. Tsang, Mun Chiu, 1987. "The impact of underutilization of education on productivity: A case study of the U.S. Bell companies," Economics of Education Review, Elsevier, vol. 6(3), pages 239-254, June.
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  7. Rubb, Stephen, 2003. "Overeducation: a short or long run phenomenon for individuals?," Economics of Education Review, Elsevier, vol. 22(4), pages 389-394, August.
  8. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
  9. Granger, C. W. J. & Newbold, P., 1974. "Spurious regressions in econometrics," Journal of Econometrics, Elsevier, vol. 2(2), pages 111-120, July.
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