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A Numerical Simulation of Educational Mismatch in the Italian Labor Market

Author

Listed:
  • Roberto Roson

    (Department of Economics, University Of Venice CÃ Foscari)

  • Emanuela Ghignoni

    (University of Rome 'Sapienza')

Abstract

This paper presents a data set, associating education levels to occupations, and a methodology, which allow estimating how the distribution of the two variables could change, after some exogenous shock affecting the labor market. We assess some implications of the empirical finding that, in response to a weaker demand for labor, sufficiently educated workers would reallocate themselves into lower-ranked occupations, rather than getting unemployed. The exercise is conducted with Italian data, where 37 occupations and 10 education levels are considered. A counterfactual distribution is estimated, using a computable general equilibrium model to simulate the impact on the labor market of a trade disruption crisis with Russia.

Suggested Citation

  • Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers 2023: 15, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2023:15
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    References listed on IDEAS

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    More about this item

    Keywords

    Skill Mismatch; Education; Overeducation; Unemployment; Labor Market; Computable General Equilibrium Models;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I20 - Health, Education, and Welfare - - Education - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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