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Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data

  • Floro Ernesto Caroleo

    ()

    (University of Naples "Parthenope”, IZA)

  • Francesco Pastore

    ()

    (Seconda Università di Napoli, IZA)

This paper provides the first available evidence on overeducation/overskilling based on AlmaLaurea data. We focus on jobs held 5 years after graduation by pre-reform graduates in 2005. Overeducation/overskilling are relatively high – at 11.4 and 8% – when compared to EU economies. Ceteris paribus they tend to be more frequent among children of parents with lower educational levels, through school tracking. Most arts degrees and social sciences, but also Geology and Biology are associated to both types of the educational mismatch. The quality of education is also a factor, suggesting that in addition to the low demand for skills, one should also reckon the inability of the educational system to provide work-related skills. Moreover, we find a non-conditional wage penalty of 20% and 16% and a conditional one of about 12% and of 7%, respectively. Heckit returns a sample selection corrected penalty slightly higher, supporting not only the job competition and job assignment models, but also the human capital model.

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File URL: http://www2.almalaurea.it/universita/pubblicazioni/wp/pdf/wp58.pdf
File Function: First version, 2011
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Paper provided by AlmaLaurea Inter-University Consortium in its series Working Papers with number 58.

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Length: 29
Date of creation: Feb 2014
Date of revision:
Handle: RePEc:laa:wpaper:58
Contact details of provider: Web page: http://www.almalaurea.it

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