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Skill mismatch in the Costa Rican labor market

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  • Blanco, Laura Cristina

Abstract

Skill mismatches are estimated using the National Household Survey 2011-2017, as defined by Chevalier (2003). A logit multinomial analysis is used to study the covariates of skill mismatches and wage equations are analyzed as a function of the workers’ skill mismatches and competence levels. The working adult population is found to have an underqualification level of 28.9%, while apparent and genuine overqualification levels are 13.3% and 0.8%, respectively. Results show that underqualification is associated to a wage premium of about 30%, while apparent and genuine overqualification have a 35% and 47.5% wage penalty, respectively. Graduates from tertiary institutions with an apparent overqualification level report a wage penalty of 38.9%, and it increases to 49.3% for those with a genuine overqualification level.

Suggested Citation

  • Blanco, Laura Cristina, 2019. "Skill mismatch in the Costa Rican labor market," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 37(2), December.
  • Handle: RePEc:rce:rvceco:38868
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