Graduate labor mismatch in Central and Eastern Europe
Using crosssection data from the REFLEX/HEGESCO surveys, this paper explores the likelihood of educationjob mismatch in Central and Eastern Europe. We classify countries in two groups according to the signaling strength of their educational credentials: the occupational labor market group (Poland, Czech Republic and Slovenia) and the internal labor market group (Hungary, Lithuania and Estonia). We analyze three types of mismatch: the vertical mismatch (under/overeducation), horizontal mismatch (inadequacy of the field of study) and, finally, skills mismatch. We are particularly interested in studying how fields of study and individual competencies affect mismatch in the labor market in these economies. Results indicate that fields of study and individual competencies both significantly affect the likelihood of various types of mismatch. There are important differences between occupational and internal labor market structures in terms of mismatch determinants.
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