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Does Over-education Influence French Economic Growth?

Author

Listed:
  • Magali Jaoul-Grammare

    () (BETA-CNRS)

  • Jean-Pascal Guironnet

    () (CREUSET)

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 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.

Suggested Citation

  • Magali Jaoul-Grammare & Jean-Pascal Guironnet, 2009. "Does Over-education Influence French Economic Growth?," Economics Bulletin, AccessEcon, vol. 29(2), pages 1190-1200.
  • Handle: RePEc:ebl:ecbull:eb-09-00233
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    References listed on IDEAS

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    1. Elliott, Graham, 1999. "Efficient Tests for a Unit Root When the Initial Observation Is Drawn from Its Unconditional Distribution," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 767-783, August.
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    7. 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.
    8. 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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    Citations

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    Cited by:

    1. Dorocki Sławomir & Borowiec Monika, 2012. "The process of transformation of academic centres as a factor upgrading the quality of human capital in the regions of France," Bulletin of Geography. Socio-economic Series, De Gruyter Open, vol. 18(18), pages 15-27, November.
    2. Nelson Oviedo & Gustavo Yamada, 2017. "Educación superior y subempleo profesional, ¿Una creciente burbuja mundial?," Working Papers 1609, Departamento de Economía, Universidad del Pacífico, revised Feb 2017.
    3. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.

    More about this item

    Keywords

    causality; growth; overeducation;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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