The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data

Stephan Kampelmann and Francois Rycx

No 7093, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We provide first evidence regarding the direct impact of educational mismatch on firm productivity. To do so, we rely on representative linked employer-employee panel data for Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant unobserved workplace characteristics, cohort effects and dynamics in the adjustment process of productivity, we find that: i) a higher level of required education exerts a significantly positive influence on firm productivity, ii) additional years of over-education (both among young and older workers) are beneficial for firm productivity, and iii) additional years of under-education (among young workers) are detrimental for firm productivity.

Keywords: linked panel data; productivity; educational mismatch; GMM (search for similar items in EconPapers)
JEL-codes: I21 J24 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012-12
New Economics Papers: this item is included in nep-edu, nep-eff and nep-ure
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Citations: View citations in EconPapers (80)

Published - published in: Economics of Education Review, 2012, 31 (6), 918-931

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Related works:
Journal Article: The impact of educational mismatch on firm productivity: Evidence from linked panel data (2012)
Working Paper: The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data (2012)
Working Paper: The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data (2012)
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