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Work-education mismatch: An endogenous theory of professionalization

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  • Ghaffarzadegan, Navid
  • Xue, Yi
  • Larson, Richard C.

Abstract

We model the education-workforce pipeline and offer an endogenous theory of professionalization and ever-higher degree attainment. We introduce two mechanisms that act on the education enterprise, causing the number of educated people to increase dramatically with relatively short-term changes in the job market. Using our illustrative dynamic model, we argue that the system is susceptible to small changes and the introduced self-driving growth engines are adequate to over-incentivize degree attainment. We also show that the mechanisms magnify effects of short-term recessions or technological changes, and create long-term waves of mismatch between workforce and jobs. The implication of the theory is degree inflation, magnified pressures on those with lower degrees, underemployment, and job market mismatch and inefficiency.

Suggested Citation

  • Ghaffarzadegan, Navid & Xue, Yi & Larson, Richard C., 2017. "Work-education mismatch: An endogenous theory of professionalization," European Journal of Operational Research, Elsevier, vol. 261(3), pages 1085-1097.
    • Handle: RePEc:eee:ejores:v:261:y:2017:i:3:p:1085-1097
    DOI: 10.1016/j.ejor.2017.02.041
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    References listed on IDEAS

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    Cited by:

    1. Magdalena ULCELUSE, 2020. "Self-employment as a stepping stone to better labor market matching: a comparison between immigrants and natives," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 86(4), pages 479-501, December.
    2. Pregoner, Joseph Dave Mendoza & Castillo, Earl John & Ordaneza, Joan & Noveno, Elizabeth, 2020. "Unveiling the Aftermath of Education-Job Mismatch among UIC Business Administration Graduates," EdArXiv ehskd, Center for Open Science.
    3. A. Sardi & E. Sorano, 2021. "Dynamic Performance Management: An Approach for Managing the Common Goods," Papers 2102.04090, arXiv.org.
    4. Alberto Sardi & Enrico Sorano, 2019. "Dynamic Performance Management: An Approach for Managing the Common Goods," Sustainability, MDPI, vol. 11(22), pages 1-22, November.
    5. Ulceluse, Magdalena, 2018. "Self-employment as a stepping stone to better labour market matching: a comparison between immigrants and natives," GLO Discussion Paper Series 219, Global Labor Organization (GLO).

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