Who is your perfect match? Educational norms, educational mismatch and firm profitability

Stephan Kampelmann, Benoit Mahy, Francois Rycx and Guillaume Vermeylen (guillaume.vermeylen@umons.ac.be)

No 16-050, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: We provide first evidence regarding the direct effect of educational norms and educational mismatch on the bottom line of firms across work environments. To do so, we use rich Belgian linked employer-employee panel data, rely on the methodological approach pioneered by Hellerstein et al. (1999), and estimate dynamic panel data models at the firm level. Our findings show an ‘inverted L’ profitability profile: undereducation is associated with lower profits, whereas higher levels of normal and overeducation are correlated with positive economic rents of roughly the same magnitude. The size of these effects is amplified in firms experiencing economic uncertainty or operating in high-tech sectors.

Keywords: Educational mismatch; productivity-wage gaps; linked panel data (search for similar items in EconPapers)
JEL-codes: J21 J24 (search for similar items in EconPapers)
Pages: 36 p.
Date: 2016-11-29
New Economics Papers: this item is included in nep-bec, nep-knm, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/240798/3/wp16050.pdf Œuvre complète ou partie de l'œuvre (application/pdf)

Related works:
Working Paper: Who Is Your Perfect Match? Educational Norms, Educational Mismatch and Firm Profitability (2016)
Working Paper: Who is your perfect match? Educational norms, educational mismatch and firm profitability (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sol:wpaper:2013/240798

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/240798

Access Statistics for this paper

More papers in Working Papers CEB from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels (bpauwels@ulb.ac.be).