Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter?

Benoît Mahy (), Francois Rycx and Guillaume Vermeylen ()
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Benoît Mahy: University of Mons

No 8885, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The authors provide first evidence on whether the direct relationship between educational mismatch and firm productivity varies across working environments. Using detailed Belgian linked employer-employee panel data for 1999-2010, they find the existence of a significant, positive (negative) impact of over- (under-)education on firm productivity. Moreover, their results show that the effect of over-education on productivity is stronger among firms: (i) with a higher share of high-skilled jobs, (ii) belonging to high-tech/knowledge-intensive industries, and (iii) evolving in a more uncertain economic environment. Interaction effects between under-education and working environments are less clear-cut. However, economic uncertainty is systematically found to accentuate the detrimental effect of under-education on productivity.

Keywords: educational mismatch; productivity; linked employer-employee panel data; working environments (search for similar items in EconPapers)
JEL-codes: J21 J24 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2015-02
New Economics Papers: this item is included in nep-bec, nep-cse, nep-edu, nep-eff, nep-lma and nep-ure
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Citations: View citations in EconPapers (49)

Published - published in: De Economist, 2015, 163 (2), 233-262

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Related works:
Journal Article: Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter? (2015)
Working Paper: Educational Mismatch and Firm Productivity: Do Skills, Technology and Uncertainty Matter? (2015)
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