Abstract
This paper shows that unfavourable economic conditions at graduation decrease
the likelihood of a good job-worker match over a worker’s subsequent
career. Mismatch is quantified in terms of overeducation by both industry and
occupation. The German Socio-Economic Panel and region-level unemployment
rates from 1994-2012 are used. Instrumental Variables estimates account
for endogenous graduation timing. A single percentage point increase in regional unemployment causes an increase in the probability of overeducation
of 1.6-1.7 percentage points for university graduates. Effects for technical tertiary education and apprenticeship graduates are smaller. Labour market entry conditions affect workers for up to 9 years after graduation.
the likelihood of a good job-worker match over a worker’s subsequent
career. Mismatch is quantified in terms of overeducation by both industry and
occupation. The German Socio-Economic Panel and region-level unemployment
rates from 1994-2012 are used. Instrumental Variables estimates account
for endogenous graduation timing. A single percentage point increase in regional unemployment causes an increase in the probability of overeducation
of 1.6-1.7 percentage points for university graduates. Effects for technical tertiary education and apprenticeship graduates are smaller. Labour market entry conditions affect workers for up to 9 years after graduation.
Original language | English |
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Pages (from-to) | 1370-1387 |
Number of pages | 18 |
Journal | Economic Inquiry |
Volume | 55 |
Issue number | 3 |
Early online date | 3 Mar 2017 |
DOIs | |
Publication status | Published - Jul 2017 |
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Ioannis Theodossiou
- Business School, Economics - Chair in Economics
- Business School, Centre for Labour Market Research (CeLMR)
Person: Academic