Output costs of education and skill mismatch in OECD countries

Pietro Garibaldi, Pedro Gomes and Thepthida Sopraseuth

Economics Letters, 2025, vol. 250, issue C

Abstract: We quantify the output costs of education and skills mismatch for 17 OECD economies, using a calibrated model of vertical mismatch. Eliminating the frictions generating mismatch would raise output by 3% to 4% on average, varying between 0.5% to 9% across countries. Although the education and skill mismatch measures are constructed using different methods and differ in size, the output costs are similar between the two measures.

Keywords: Skill mismatch; Education mismatch; Over-employment; Under-employment; Vertical mismatch; Output costs of mismatch (search for similar items in EconPapers)
JEL-codes: E24 J01 J21 J24 J31 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176525001156
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: https://EconPapers.repec.org/RePEc:eee:ecolet:v:250:y:2025:i:c:s0165176525001156

DOI: 10.1016/j.econlet.2025.112278

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().