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The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data

  • Kampelmann, Stephan

    ()

    (Free University of Brussels)

  • Rycx, Francois

    ()

    (Free University of Brussels)

We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: i) a higher level of required education exerts a significantly positive influence on firm productivity, ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and iii) additional years of under-education (among young workers) are detrimental for firm productivity.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7093.

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Length: 34 pages
Date of creation: Dec 2012
Date of revision:
Publication status: published in: Economics of Education Review, 2012, 31 (6), 918-931
Handle: RePEc:iza:izadps:dp7093
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