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

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  • Floro Ernesto Caroleo

    () (University of Naples "Parthenope”, IZA)

  • Francesco Pastore

    () (Seconda Università di Napoli, IZA)

Abstract

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.

Suggested Citation

  • Floro Ernesto Caroleo & Francesco Pastore, 2014. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Working Papers 58, AlmaLaurea Inter-University Consortium.
  • Handle: RePEc:laa:wpaper:58
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    Citations

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    Cited by:

    1. Caroleo, Floro Ernesto & Pastore, Francesco, 2017. "Investing in Human Capital to Boost Growth!," IZA Policy Papers 135, Institute for the Study of Labor (IZA).
    2. repec:spr:italej:v:3:y:2017:i:2:d:10.1007_s40797-017-0053-3 is not listed on IDEAS
    3. Jacek Liwiński, 2016. "Are school-provided skills useful at work? Results of the Wiles test," Working Papers 2016-37, Faculty of Economic Sciences, University of Warsaw.
    4. repec:sos:sosjrn:170308 is not listed on IDEAS
    5. repec:spr:qualqt:v:51:y:2017:i:6:d:10.1007_s11135-016-0410-6 is not listed on IDEAS
    6. repec:ces:ifofor:v:18:y:2017:i:2:p:26-33 is not listed on IDEAS
    7. Barbara Ermini & Luca Papi & Francesca Scaturro, 2016. "Over-education among italian Ph.D. graduates. Does the crisis make a difference?," Mo.Fi.R. Working Papers 126, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    8. Valentina Meliciani & Debora Radicchia, 2016. "Overeducation and overskill in the Italian labour market: the role of fields of study," Working Papers 33, Birkbeck Centre for Innovation Management Research, revised Jul 2016.
    9. Giuseppe Lucio Gaeta, 2015. "Was it worth it? An empirical analysis of over-education among PhD recipients in Italy," International Journal of Social Economics, Emerald Group Publishing, vol. 42(3), pages 222-238, March.
    10. Giuseppe Croce, 2016. "La rincorsa mancata. Istruzione e cambiamento tecnologico in Italia a confronto con le altre economie avanzate," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, pages 77-99.
    11. Piero Cipollone, Andrea Cutillo, 2013. "Overeducation Or Asymmetric Information?," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 67(2), pages 123-138, April-Jun.
    12. Francesco Pastore, 2017. "Getting It Right: Youth Employment Policy within the EU," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 18(2), pages 26-33, July.
    13. Barbara Ermini & Luca Papi & Francesca Scaturro, 2017. "Over education and the great recession. The case of italian PH.D graduates," Working Papers 420, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    14. Luca Favero & Andreina Fucci, 2017. "The Erasmus effect on earnings: a panel analysis from Siena," Department of Economics University of Siena 762, Department of Economics, University of Siena.
    15. Aprile, Maria Carmela & Fiorillo, Damiano, 2016. "Water Conservation Behavior and Environmental Concerns," MPRA Paper 75065, University Library of Munich, Germany.
    16. Giuseppe Lucio Gaeta & Giuseppe Lubrano Lavadera & Francesco Pastore, 2017. "Much Ado about Nothing? The Wage Penalty of Holding a PhD Degree but Not a PhD Job Position," Research in Labor Economics,in: Skill Mismatch in Labor Markets, volume 45, pages 243-277 Emerald Publishing Ltd.
    17. Gaeta, Giuseppe Lucio & Lubrano Lavadera, Giuseppe & Pastore, Francesco, 2016. "Much Ado About Nothing? The Wage Effect of Holding a Ph.D. Degree But Not a Ph.D. Job Position," IZA Discussion Papers 10051, Institute for the Study of Labor (IZA).
    18. Luca Cattani & Giovanni Guidetti & Giulio Pedrini, 2016. "Overeducation among Italian graduates: do different measures actually diverge?," Working Papers 77, AlmaLaurea Inter-University Consortium.
    19. Vladimir Mau & Tatiana Klyachko, 2015. "Будущее Университетов (Future of Universities)," Working Papers 128, Gaidar Institute for Economic Policy, revised 2015.
    20. L. Cattani & G. Guidetti & G. Pedrini, 2014. "Assessing the incidence and wage effects of overeducation among Italian graduates using a new measure for educational requirements," Working Papers wp939, Dipartimento Scienze Economiche, Universita' di Bologna.
    21. Jacek Liwiński, 2016. "Are school-provided skills useful at work? Results of the Wiles test," Working Papers 2016-37, Faculty of Economic Sciences, University of Warsaw.
    22. Caroleo, Floro Ernesto & Pastore, Francesco, 2015. "Overeducation: A Disease of the School-to-Work Transition System," IZA Discussion Papers 9049, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    University-to-Work Transition; Overeducation; Overskilling; Sample Selection Bias; AlmaLaurea; Italy.;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I2 - Health, Education, and Welfare - - Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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