A Numerical Simulation of Educational Mismatch in the Italian Labor Market

Roberto Roson and Emanuela Ghignoni

No 177, CIMEO Working Paper Series from Centre for Investigation and Modelling of Experimental Observations (CIMEO)

Abstract: This paper presents a dataset associating education levels with occupations and proposes a methodology to estimate how the joint distribution of these variables may change after an exogenous shock affecting the labour market. The analysis focuses on the implication that, in response to weaker labour demand, sufficiently educated workers may reallocate into lower-ranked occupations rather than become unemployed. The exercise is conducted with Italian data covering 37 occupations and 10 education levels. A counterfactual employment-by-education distribution is estimated by using a computable general equilibrium model to simulate the labour-market impact of a trade disruption crisis with Russia.

Keywords: Skill mismatch; education; overeducation; unemployment; labour market; computable general equilibrium models; Italy (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)
Date: 2023-07
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Persistent link: https://EconPapers.repec.org/RePEc:ter:wpaper:00177

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