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How might the negative impact of higher education on growth be explained? The role of vertical qualification (mis)match in an MRW‐type model

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  • Mariya Neycheva

Abstract

This study explores the impact of higher education on growth in 11 new EU members over the period 2000–2016 using an augmented MRW‐type model which takes into account the quality of education and vertical mismatch. More precisely, it tests whether the accelerating increase of college graduates causes an oversupply of educated labour which, in turn, extends the qualification mismatch and adversely affects growth of per capita income. We find that an increase of the most educated labour force does not per se lead to a higher growth rate. The impact of human capital becomes positive and statistically significant only if graduates with occupations requiring tertiary education are considered in the model. In addition, the econometric outcome implies that the extent of skill mismatch is determined primarily by the rising female population with college education and the gross value added of trade‐related services.

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  • Mariya Neycheva, 2019. "How might the negative impact of higher education on growth be explained? The role of vertical qualification (mis)match in an MRW‐type model," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(4), pages 943-969, October.
    • Handle: RePEc:wly:ectrin:v:27:y:2019:i:4:p:943-969
    DOI: 10.1111/ecot.12225
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    Cited by:

    1. Pierre LESUISSE, 2024. "Education, public expenditure and economic growth under the prism of performance," Working Papers of BETA 2024-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Pierre Lesuisse, 2022. "Education, public expenditure and economic growth under the prism of performance," Working Papers hal-03685311, HAL.

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