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Measuring Occupational Mismatch: Overeducation and Overskill in Europe—Evidence from PIAAC

Author

Listed:
  • Sara Flisi

    () (European Commission – Joint Research Centre)

  • Valentina Goglio

    () (European Commission – Joint Research Centre)

  • Elena Claudia Meroni

    () (European Commission – Joint Research Centre)

  • Margarida Rodrigues

    () (German Federal Employment Agency (BA))

  • Esperanza Vera-Toscano

    () (European Commission – Joint Research Centre)

Abstract

Occupational mismatch has been a hot topic in the economics literature in recent decades; however, no consensus has been reached on how to conceptualise and measure this phenomenon. We explore the unique opportunity offered by the PIAAC survey to measure occupational mismatch at the individual level based on both education- (overeducation) and skill-based (overskilling) variables by using both objective and subjective measures. For this purpose, we use data on 17 European countries and compute up to 20 different indicators of occupational mismatch. We find that the conceptualisation and measurement of occupational mismatch are indeed important and that education and skill mismatch do not measure the same phenomenon. In fact, only a small percentage of mismatched individuals are mismatched with respect to both education and skill, whereas the majority are mismatched with respect to either education or skill only. At the country level, we find a negative correlation between the incidence of education and skill mismatch, which has important implications for policies aiming to address this labour market inefficiency.

Suggested Citation

  • Sara Flisi & Valentina Goglio & Elena Claudia Meroni & Margarida Rodrigues & Esperanza Vera-Toscano, 2017. "Measuring Occupational Mismatch: Overeducation and Overskill in Europe—Evidence from PIAAC," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1211-1249, April.
  • Handle: RePEc:spr:soinre:v:131:y:2017:i:3:d:10.1007_s11205-016-1292-7
    DOI: 10.1007/s11205-016-1292-7
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    Cited by:

    1. 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.
    2. Valentina Meliciani & Debora Radicchia, 2016. "Overeducation and overskill in the Italian labour market: the role of fields of study," Working Papers 33, Birkbeck Centre for Innovation Management Research, revised Jul 2016.
    3. Esperanza Vera-Toscano & Elena Claudia Meroni, 2016. "A descriptive analysis of the evolution of occupational mismatch in Europe," JRC Working Papers JRC103228, Joint Research Centre (Seville site).
    4. Anıl DUMAN, 2018. "Education Mismatches in the Labor Markets and Their Impact on Wages across Sectors: Evidence from Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    5. Gaeta, Giuseppe Lucio & Lubrano Lavadera, Giuseppe & Pastore, Francesco, 2018. "Overeducation wage penalty among Ph.D. holders. An unconditional quantile regression analysis on Italian data," GLO Discussion Paper Series 180, Global Labor Organization (GLO).
    6. Meroni, Elena Claudia & Vera-Toscano, Esperanza, 2017. "The persistence of overeducation among recent graduates," Labour Economics, Elsevier, vol. 48(C), pages 120-143.
    7. Tran, Tuyen Quang & Hung Pham, Hiep & Thi Vo, Hoa & Thuy Luu, Hong & Mai Nguyen, Huong, 2019. "Local governance, education and occupation-education mismatch: Heterogeneous effects on wages in a lower middle income economy," International Journal of Educational Development, Elsevier, vol. 71(C).
    8. Esperanza Vera-Toscano & Elena C. Meroni, 2021. "An Age–Period–Cohort Approach to the Incidence and Evolution of Overeducation and Skills Mismatch," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 711-740, January.
    9. Dag Kolsrud, 2018. "Mismatch in the Norwegian Labour Market 2003–2013: Did Immigrants Make a Difference?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 979-997, June.
    10. Lucia Kohnová & Ján Papula & Zuzana Papulová & Katarína Stachová & Zdenko Stacho, 2020. "Job mismatch: the phenomenon of overskilled employees as a result of poor managerial competences," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 83-102, September.
    11. Rafael Muñoz de Bustillo Llorente & Sudipa Sarkar & Raquel Sebastian & Jose-Ignacio Antón, 2018. "Educational mismatch in Europe at the turn of the century: Measurement, intensity and evolution," International Journal of Manpower, Emerald Group Publishing, vol. 39(8), pages 977-995, November.
    12. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2020. "Over-Qualification and the Dimensions of Job Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 591-620, January.
    13. Garibaldi, Pietro & Gomes, Pedro Maia & Sopraseuth, Thepthida, 2020. "Output Costs of Education and Skill Mismatch," IZA Discussion Papers 12974, Institute of Labor Economics (IZA).
    14. Héctor Alberto Botello-Peñaloza & Isaac Guerrero-Rincón, 2019. "Diferencias salariales y desajuste educativo en Colombia," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 13(2), pages 177-191, December.
    15. 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.
    16. Juan Acosta-Ballesteros & María del Pilar Osorno-del Rosal & Olga María Rodríguez-Rodríguez, 2018. "Overeducation of Young Workers in Spain: How Much Does the First Job Matter? Social Indicators Research," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 109-139, July.
    17. 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.
    18. Fregin, Marie-Christine & Levels, Mark & van der Velden, Rolf, 2020. "Labour market institutions and the challenge of allocating the right people to the right jobs: Evidence on the relation between labour market institutions and optimal skill matching from 28 industrial," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 257-275.
    19. Queralt Capsada-Munsech, 2019. "Measuring Overeducation: Incidence, Correlation and Overlaps Across Indicators and Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 279-301, August.
    20. Igna, Ioana A., 2018. "The effects of educational mismatch on inventor productivity. Evidence from Sweden, 2003-2010," Papers in Innovation Studies 2018/8, Lund University, CIRCLE - Center for Innovation Research.
    21. Kracke, Nancy & Reichelt, Malte & Vicari, Basha, 2017. "Wage losses due to overqualification: The role of formal degrees and occupational skills," IAB Discussion Paper 201710, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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