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Optimal 'Mismatch' and Promotions

Author

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  • Hersch, Joni

Abstract

Seeming 'mismatches,' in which workers are either under- or overqualified, are shown to be optimal. From the firm's point of view, although turnover will be positively related to overqualification, training costs will be inversely related to overqualification. Further, overqualified workers constitute a pool from which promotions are made. Workers enter seeming mismatches due to search and mobility costs and because of opportunities for promotion. Estimates using a unique data set indicate that workers who are overqualified at hire receive less training and more promotions and that workers overqualified for their current job are more likely to quit. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Hersch, Joni, 1995. "Optimal 'Mismatch' and Promotions," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 611-624, October.
    • Handle: RePEc:oup:ecinqu:v:33:y:1995:i:4:p:611-24
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    Citations

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    Cited by:

    1. Melanie K. Jones & Richard J. Jones & Paul L. Latreille & Peter J. Sloane, 2009. "Training, Job Satisfaction, and Workplace Performance in Britain: Evidence from WERS 2004," LABOUR, CEIS, vol. 23(s1), pages 139-175, March.
    2. Büchel, Felix & Mertens, Antje, 2001. "Overeducation, undereducation, and the theory of career mobility," SFB 373 Discussion Papers 2001,84, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    3. Barbara Ermini & Luca Papi & Francesca Scaturro, 2017. "An Analysis of the Determinants of Over-Education Among Italian Ph.D Graduates," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(2), pages 167-207, July.
    4. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
    5. Kucel, Aleksander & Byrne, Delma, 2008. "Are Over-educated People Insiders or Outsiders? A Case of Job Search Methods and Over-education in UK," Papers WP258, Economic and Social Research Institute (ESRI).
    6. Barbara Ermini & Luca Papi & Francesca Scaturro, 2016. "Over-education among italian Ph.D. graduates. Does the crisis make a difference?," Mo.Fi.R. Working Papers 126, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    7. Asplund, Rita & Lilja, Reija, 1998. "Labour Market Transitions in Finland. Does background matter?," Discussion Papers 660, The Research Institute of the Finnish Economy.
    8. Luz A. Flórez & Leidy Gómez D., 2019. "Skill mismatch and labour turnover in a developing country: the Colombian case," Borradores de Economia 1099, Banco de la Republica de Colombia.
    9. repec:kap:iaecre:v:11:y:2005:i:1:p:93-109 is not listed on IDEAS
    10. Zainizam Zakariya, 2017. "Job Mismatch and On‐the‐job Search Behavior Among University Graduates in Malaysia," Asian Economic Journal, East Asian Economic Association, vol. 31(4), pages 355-379, December.
    11. Benjamin Artz & David M. Welsch, 2021. "Overeducation and wages revisited: A two‐cohort comparison and random coefficients approach," Southern Economic Journal, John Wiley & Sons, vol. 87(3), pages 909-936, January.
    12. Joaquín Artés & Maria del Salinas-Jiménez & Javier Salinas-Jiménez, 2014. "Small Fish in a Big Pond or Big Fish in a Small Pond? The Effects of Educational Mismatch on Subjective Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 119(2), pages 771-789, November.

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