Firm Human Resource Practices and Educational Mismatch

Gabriella Berloffa, Daniela Piazzalunga and Fabio Pieri
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Gabriella Berloffa: University of Trento

No 17424, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The paper introduces a new measure of educational mismatch at the firm level, constructed by merging firm and individual data at the sector-firm size-year level. This measure captures both the intensity of mismatch and its type – whether overeducation, undereducation, or a mix of the two. We assess the role of human resource practices in reducing the intensity of educational mismatch in Italian firms by estimating econometric models that control for a rich set of firm characteristics, as well as year and industry-region fixed effects. Firm-fixed effects and instrumental variable models complement the analysis. Findings indicate that the use of private recruitment agencies, on-the-job training, and structured supervision is associated with a reduction in mismatch intensity. The impact of other practices varies by mismatch type: higher job turnover rates correlate with lower undereducation but increased overeducation, while second-level bargaining increases undereducation and reduces overeducation.

Keywords: educational mismatch; human resource practices; firm-level analysis; overeducation; undereducation (search for similar items in EconPapers)
JEL-codes: D22 D23 J24 O15 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2024-10
New Economics Papers: this item is included in nep-hrm and nep-lma
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