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Educational (Mis)match and skill utilization in Germany: Assessing the role of worker and job characteristics
[Qualifikatorisches (Mis)matching und die Ausnutzung von fachlichen Kenntnissen und Fähigkeiten von Erwerbstätigen in Deutschland: Zur Bedeutung von Personen- und Arbeitsplatzmerkmalen]

Author

Listed:
  • Daniela Rohrbach-Schmidt

    () (Federal Institute for Vocational Education and Training)

  • Michael Tiemann

    () (Federal Institute for Vocational Education and Training)

Abstract

This paper provides precise figures on the incidence and wage penalties of mismatching in Germany. We use the BIBB/BAuA Employment Survey 2006 to compute two different measures of person-to-job matching. A first measure indicates an educational (mis)match, i.e., whether a worker’s attained level of education corresponds to the qualificational requirements of his or her job. Second, — and different from most other studies—we observe a skill (mis)match that reflects the correspondence between the skills of the job holder and the skill requirements of the job. We explore whether and the extent to which results on mismatch differ between these measures and explain the probability of being (mis)matched by different sets of worker and job characteristics. We also examine wage penalties for mismatching in Germany, considering a large number of controls for workers and, in addition to most earlier studies, job heterogeneity; we use random intercept models with workers nested in occupations. Our results indicate that large shares of over- or under-educated workers in Germany have skills that correspond to the skill requirements of their jobs. Furthermore, there are workers perfectly matched with respect to their education who, nevertheless, feel under- or over-challenged by their jobs’ skill requirements. Random intercept models reveal that beyond worker characteristics, i.e., human capital compensation (heterogeneous ability) and career mobility rationalities, job characteristics play a role in the mismatching variance and its real or apparent wage penalties.

Suggested Citation

  • Daniela Rohrbach-Schmidt & Michael Tiemann, 2016. "Educational (Mis)match and skill utilization in Germany: Assessing the role of worker and job characteristics [Qualifikatorisches (Mis)matching und die Ausnutzung von fachlichen Kenntnissen und Fäh," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(2), pages 99-119, October.
  • Handle: RePEc:spr:jlabrs:v:49:y:2016:i:2:d:10.1007_s12651-016-0198-9
    DOI: 10.1007/s12651-016-0198-9
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    References listed on IDEAS

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    Cited by:

    1. repec:cep:cverdp:020 is not listed on IDEAS
    2. Michael J. Handel, 2016. "What do people do at work? [Was machen Menschen bei der Arbeit?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(2), pages 177-197, October.
    3. Mario Reinhold & Stephan Thomsen, 2017. "The changing situation of labor market entrants in Germany [Die veränderliche Situation für Berufseinsteiger in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 161-174, August.
    4. Nancy Kracke & Margarida Rodrigues, 2020. "A Task-Based Indicator for Labour Market Mismatch," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 399-421, June.
    5. Cindy M. Cunningham & Robert D. Mohr, 2019. "Using tools to distinguish general and occupation-specific skills," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 53(1), pages 1-11, December.
    6. Nancy Kracke & Malte Reichelt & Basha Vicari, 2018. "Wage Losses Due to Overqualification: The Role of Formal Degrees and Occupational Skills," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1085-1108, October.
    7. Wiedner, Jonas & Schaeffer, Merlin, 2020. "Career trajectories into undereducation. Which skills and resources substitute formal education in the intergenerational transmission of advantage?," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics.

    More about this item

    Keywords

    Mismatch; Skill utilization; Overeducation; Job skills; Labor supply and demand; Wage penalties;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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