Educational mismatch in developing countries: A review of the existing evidence

Over the last thirty to forty years, many low and middle-income countries have invested heavily in their educational systems. They have made tremendous strides with respect to literacy rates as well as the quantity of education with significant improvements in enrolments across primary, secondary and tertiary levels. This chapter focuses on the capacity of labor markets in poor countries to absorb the increased supply of educated labor and whether this has resulted in increased mismatch relative to middle and high income countries. In particular, we examine the incidence of mismatch, its determinants and also consequences with respect to wages, job satisfaction and economic growth. Throughout we pay attention to the specific characteristics of developing country labor markets.