Overeducation at a Glance: Determinants and Wage Effects of the Educational Mismatch, Looking at the Almalaurea Data

35 Pages Posted: 15 Dec 2013

See all articles by Floro E. Caroleo

Floro E. Caroleo

University of Naples Federico II; IZA Institute of Labor Economics

Francesco Pastore

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate; IZA Institute of Labor Economics

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.

Keywords: university-to-work transition, overeducation, overskilling, sample selection bias, AlmaLaurea, Italy

JEL Classification: C25, C26, C33, I2, J13, J24

Suggested Citation

Caroleo, Floro Ernesto and Pastore, Francesco, Overeducation at a Glance: Determinants and Wage Effects of the Educational Mismatch, Looking at the Almalaurea Data. IZA Discussion Paper No. 7788, Available at SSRN: https://ssrn.com/abstract=2367663

Floro Ernesto Caroleo (Contact Author)

University of Naples Federico II ( email )

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IZA Institute of Labor Economics

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Francesco Pastore

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate ( email )

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Italy

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IZA Institute of Labor Economics

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Germany

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