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Educational qualifications mismatch in Europe Is it demand or supply driven?

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  • Emanuela Ghignoni
  • Alina Verashchagina

Abstract

Most papers dealing with individual overeducation risks focus on labour supply characteristics and workers behaviour. On the other hand, only few studies consider labour demand characteristics and technological change. In this paper we analyse the influence of both demand and supply factors on educational mismatch in a set of ten European countries. Our hypothesis, confirmed by results obtained using ordered probit model with sample selection, is that demand factors generally play major role in reducing educational mismatch in technologically more advanced countries, whereas supply factors are more important in countries that are lagging behind in the international division of labour. At the same time, important cross-country and gender differences have been identified in the way the demand/supply factors operate. All this calls for the fine-tuning of policies aimed to tackle the problem of educational mismatch. Apparently, EPL does not appear neither to hinder technological development, nor increase overeducation.

Suggested Citation

  • Emanuela Ghignoni & Alina Verashchagina, 2012. "Educational qualifications mismatch in Europe Is it demand or supply driven?," Working Papers 154, University of Rome La Sapienza, Department of Public Economics.
  • Handle: RePEc:sap:wpaper:wp154
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    Cited by:

    1. Floro Ernesto Caroleo & Francesco Pastore, 2012. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Discussion Papers 18_2012, CRISEI, University of Naples "Parthenope", Italy.
    2. 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).
    3. Davia, Maria A. & McGuinness, Seamus & O'Connell, Philip J., 2016. "Determinants of Regional Differences in Rates of Overeducation in Europe," IZA Discussion Papers 10250, Institute for the Study of Labor (IZA).
    4. Theo Sparreboom & Alexander Tarvid, 2016. "Imbalanced Job Polarization and Skills Mismatch in Europe," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(1), pages 15-42, July.
    5. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.

    More about this item

    Keywords

    Educational mismatch; Overeducation; Undereducation; Demand; Supply; Ordered Probit;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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