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Horizontal Mismatch and Vocational Education

Author

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  • Juerg Schweri
  • Annina Eymann
  • Manuel Aepli

Abstract

Recent literature suggests that vocational education provides individuals with smoother transitions into the labor market but lower wages over the lifecycle. A possible mechanism explaining lower wages is horizontal mismatch, defined as a mismatch between qualifications acquired by individuals and those required for their current job. Some studies have found higher mismatch wage penalties when individuals' education is more specific. Therefore, we analyze horizontal mismatch in Switzerland, the country with the highest proportion of firm-based vocational education and training in the OECD. We use subjective and objective measures of mismatch from the Swiss Household Panel. While we find sizeable mismatch wage penalties in OLS estimations, effects are small or insignificant in fixed-effects regressions. This holds for workers with vocational and general education background alike. We conclude that vocational education is more transferable than often assumed. We finish with recommendations on concept and methods for future analyses of horizontal mismatch.

Suggested Citation

  • Juerg Schweri & Annina Eymann & Manuel Aepli, 2019. "Horizontal Mismatch and Vocational Education," Economics of Education Working Paper Series 0160, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:iso:educat:0160
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    References listed on IDEAS

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    Cited by:

    1. Bernd-Joachim Ertelt & Andreas Frey & Melanie Hochmuth & Jean-Jacques Ruppert & Silke Seyffer, 2021. "Apprenticeships as a Unique Shaping Field for the Development of an Individual Future-Oriented “Vocationality”," Sustainability, MDPI, Open Access Journal, vol. 13(4), pages 1-14, February.
    2. Uschi Backes-Gellner & Patrick Lehnert, 2021. "The Contribution of Vocational Education and Training to Innovation and Growth," Economics of Education Working Paper Series 0177, University of Zurich, Department of Business Administration (IBW).
    3. Irene Kriesi & Juerg Schweri, 2019. "Types of Education, Achievement and Labour Market Integration over the Life Course," Social Inclusion, Cogitatio Press, vol. 7(3), pages 58-64.
    4. Aepli, Manuel, 2019. "Technological change and occupation mobility: A task-based approach to horizontal mismatch," GLO Discussion Paper Series 361, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Horizontal mismatch; Overeducation; Qualification; Switzerland; Training; Vocational Education; Wages;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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