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Output Costs of Education and Skill Mismatch in OECD Countries

Author

Listed:
  • Pietro Garibaldi

    (UNITO - Università degli studi di Torino = University of Turin)

  • Pedro Gomes

    (University of London [London])

  • Thepthida Sopraseuth

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

We quantify the output costs of education and skills mismatch for 17 OECD economies, using a calibrated model of vertical mismatch. Eliminating the frictions generating mismatch would raise output by 3% to 4% on average, varying between 0.5% to 9% across countries. Although the education and skill mismatch measures are constructed using different methods and differ in size, the output costs are similar between the two measures.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Pietro Garibaldi & Pedro Gomes & Thepthida Sopraseuth, 2025. "Output Costs of Education and Skill Mismatch in OECD Countries," Post-Print hal-05635055, HAL.
    • Handle: RePEc:hal:journl:hal-05635055
    DOI: 10.1016/j.econlet.2025.112278
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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