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Job Mismatches and their Labour Market Effects among School-leavers in Europe

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  • Maarten Wolbers
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    In this paper, we investigate the determinants of job mismatches with respect to field of education among school-leavers in Europe. In addition, the effects of having a job mismatch on the labour market position of school-leavers are examined. Special attention is paid to cross-country variation in this respect. The data that are used come from the EU LFS 2000 ad hoc module on school-to-work transitions. The results of the empirical analysis show that several individual, job, and structural characteristics affect the likelihood of having a job mismatch. Furthermore, the incidence of job mismatches differs between European countries: in countries where the share of upper secondary education students in school-based vocational education is high, the incidence of job mismatches among school-leavers is higher than in countries where this share is low. With respect to the labour market effects of job mismatches, the most important finding is that school-leavers with a non matching job achieve less occupational status than those with a matching one. This negative effect of job mismatches is smaller in countries where the share of school-based, respectively apprenticeship-type vocational education is higher. Moreover, the analysis reveals that school-leavers with a job mismatch use adjustment strategies to improve fit. A first strategy refers to job search activities: school-leavers with a non matching job more frequently look for another job than school-leavers with a matching job. In countries where the share of school-based vocational education is high, the effect of having a job mismatch on the likelihood of looking for another job is smaller than in countries where this share is low. A second adjustment strategy concerns training participation: on average, there is a negative effect of having a job mismatch on the probability of participating in continuous vocational training. However, in countries where the share of school-based, respectively apprenticeship-type vocational education is low, the impact of having a job mismatch on training participation is positive

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    Paper provided by MZES in its series MZES Working Papers with number 47.

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    Date of creation: 09 Jul 2002
    Handle: RePEc:erp:mzesxx:p0022
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    1. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-452, July.
    2. Clifford Clogg & James Shockey, 1984. "Mismatch between occupation and schooling: A prevalence measure, recent trends and demographic analysis," Demography, Springer;Population Association of America (PAA), vol. 21(2), pages 235-257, May.
    3. Ganzeboom, H.B.G. & de Graaf, P.M. & Treiman, D.J. & de Leeuw, J., 1992. "A standard international socio-economic index of occupational status," WORC Paper 85970031-d601-46e3-befb-1, Tilburg University, Work and Organization Research Centre.
    4. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
    5. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    6. Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
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