Economics at your fingertips  

Overeducation, market recognition, and effective labour supply

Yu He, Xiujian Peng and Hangtian Xu

China Economic Review, 2020, vol. 59, issue C

Abstract: Supply of skilled workers in an economy is usually measured based on the number of highly educated people. This may, however, lead to an overestimation of effective labour supply when considerable people are overeducated. By incorporating a concept of “market recognition,” which proxies the gap between the capabilities reflected through the education level and the capabilities required by employers, we establish a general equilibrium model to quantify this gap in China during 1999–2011. Our calibration results show that overeducation had deteriorated as market recognition continued to decline. We give an interpretation from the perspective of effective labour supply.

Keywords: Overeducation; Market recognition; Human capital; Labour supply; Computable general equilibrium model (CGE) (search for similar items in EconPapers)
JEL-codes: I21 I26 J21 J24 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

DOI: 10.1016/j.chieco.2019.101384

Access Statistics for this article

China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu

More articles in China Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2021-06-30
Handle: RePEc:eee:chieco:v:59:y:2020:i:c:s1043951x19301452