A Numerical Simulation of Educational Mismatch in the Italian Labor Market

Roberto Roson and Emanuela Ghignoni

No 2023: 15, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper presents a data set, associating education levels to occupations, and a methodology, which allow estimating how the distribution of the two variables could change, after some exogenous shock affecting the labor market. We assess some implications of the empirical finding that, in response to a weaker demand for labor, sufficiently educated workers would reallocate themselves into lower-ranked occupations, rather than getting unemployed. The exercise is conducted with Italian data, where 37 occupations and 10 education levels are considered. A counterfactual distribution is estimated, using a computable general equilibrium model to simulate the impact on the labor market of a trade disruption crisis with Russia.

Keywords: Skill Mismatch; Education; Overeducation; Unemployment; Labor Market; Computable General Equilibrium Models (search for similar items in EconPapers)
JEL-codes: A20 C23 C68 C82 D58 E24 F16 I20 J21 J24 J62 J82 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2023
New Economics Papers: this item is included in nep-cis
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Working Paper: A Numerical Simulation of Educational Mismatch in the Italian Labor Market (2023)
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