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The relation between formal education and skill acquisition in young workers first job

  • Verhaest, Dieter

    ()

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Omey, Eddy

    (Universiteit Gent, Belgium)

We analyse the relation between formal education and skill acquisition (SA) on-the-job for a sample of Flemish school leavers. SA is measured both indirectly through training participation and directly through subjective assessments. Formal education is found to reinforce labour market inequality since additional years of education enhance the probability on all types of SA. This impact is, with respect to general SA, higher for generally than for vocationally educated individuals. Particularly between-occupation effects of education explain these outcomes: jobs that require more years of formal education typically also require more additional training and skill acquisition. Within occupations, we find some limited evidence on both dominant complementary and substitution effects. Undereducated workers have lower overall training and SA probabilities than adequately educated workers in similar occupations; overeducated workers acquire less transferable or general skills than their adequately educated colleagues. Since overeducated workers work in jobs with less additional SA requirements, they also acquire less additional skills than adequately educated workers with a similar educational background.

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File URL: https://lirias.hubrussel.be/bitstream/123456789/2470/1/09HRP07.pdf
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Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2009/07.

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Length: 25 pages
Date of creation: Mar 2009
Date of revision:
Handle: RePEc:hub:wpecon:200907
Contact details of provider: Web page: http://research.hubrussel.be

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  1. Booth, Alison L, 1991. "Job-Related Formal Training: Who Receives It and What Is It Worth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 281-94, August.
  2. Heijke, Hans & Meng, Christoph & Ris, Catherine, 2003. "Fitting to the job: the role of generic and vocational competencies in adjustment and performance," Labour Economics, Elsevier, vol. 10(2), pages 215-229, April.
  3. D. Verhaest & E. Omey, 2008. "Objective overeducation and worker well-being: a shadow price approach," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 08/514, Ghent University, Faculty of Economics and Business Administration.
  4. Dieter Verhaest & Eddy Omey, 2006. "The Impact of Overeducation and its Measurement," Social Indicators Research, Springer, vol. 77(3), pages 419-448, 07.
  5. Bishop, John H. & Mane, Ferran, 2004. "The impacts of career-technical education on high school labor market success," Economics of Education Review, Elsevier, vol. 23(4), pages 381-402, August.
  6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
  7. Heijke,Hans & Meng,Christoph & Ramaekers,Ger, 2003. "An investigation into the role of human capital competences and their pay-off," ROA Research Memorandum 001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  8. Greenhalgh, Christine & Stewart, Mark, 1987. "The Effects and Determinants of Training," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(2), pages 171-90, May.
  9. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2003. "Training in Europe," IZA Discussion Papers 933, Institute for the Study of Labor (IZA).
  10. Mane, F., 1998. "Trends in the Payoff to Academic and Occupation-Specific Skills: The Short and Midium Run Returns to Academic and Vocational High School Courses for Non-College Bound Students," Papers 98-07, Cornell - Center for Advanced Human Resource Studies.
  11. Daniel P. McMillen & Paul T. Seaman & Larry D. Singell, 2003. "A Mismatch Made in Heaven: A Hedonic Analysis of Overeducation and Undereducation," University of Oregon Economics Department Working Papers 2004-1, University of Oregon Economics Department, revised 01 Dec 2003.
  12. Sicherman, Nachum & Galor, Oded, 1990. "A Theory of Career Mobility," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 169-92, February.
  13. Lorraine Dearden & Steven McIntosh & Michal Myck & Anna Vignoles, 2000. "The Returns to Academic and Vocational Qualifications in Britain," CEE Discussion Papers 0004, Centre for the Economics of Education, LSE.
  14. Francis Green & Scott M. Montgomery, 1998. "The Quality of Skill Acquisition in Young Workers' First Job," LABOUR, CEIS, vol. 12(3), pages 473-487, 09.
  15. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  16. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  17. Arulampalam, Wiji & Booth, Alison L, 2001. "Learning and Earning: Do Multiple Training Events Pay? A Decade of Evidence from a Cohort of Young British Men," Economica, London School of Economics and Political Science, vol. 68(271), pages 379-400, August.
  18. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April.
  19. Green, Francis, 1993. "The Determinants of Training of Male and Female Employees in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(1), pages 103-22, February.
  20. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ojt, June.
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