Arbeitspapier
Output Costs of Education and Skill Mismatch
We propose a simple theory of under- and over-employment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low-type workers can perform skilled jobs. People have different non-pecuniary values over these jobs, akin to a Roy model. We calibrate two versions of the model to match moments of 17 OECD economies, considering separately education and skills mismatch. The cost of mismatch is 3% of output on average but varies between -1% to 9% across countries. The key variable that explains the output cost of mismatch is not the percentage of mismatched workers but their wage relative to well-matched workers.
- Sprache
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Englisch
- Erschienen in
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Series: IZA Discussion Papers ; No. 12974
- Klassifikation
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Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Human Capital; Skills; Occupational Choice; Labor Productivity
- Thema
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education mismatch
skill mismatch
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Garibaldi, Pietro
Gomes, Pedro Maia
Sopraseuth, Thepthida
- Ereignis
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Veröffentlichung
- (wer)
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Institute of Labor Economics (IZA)
- (wo)
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Bonn
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:42 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Garibaldi, Pietro
- Gomes, Pedro Maia
- Sopraseuth, Thepthida
- Institute of Labor Economics (IZA)
Entstanden
- 2020