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
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 12974

Klassifikation
Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Human Capital; Skills; Occupational Choice; Labor Productivity
Thema
education mismatch
skill mismatch

Ereignis
Geistige Schöpfung
(wer)
Garibaldi, Pietro
Gomes, Pedro Maia
Sopraseuth, Thepthida
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Garibaldi, Pietro
  • Gomes, Pedro Maia
  • Sopraseuth, Thepthida
  • Institute of Labor Economics (IZA)

Entstanden

  • 2020

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