EconPapers    
Economics at your fingertips  
 

Wage effects of cognitive skills and educational mismatch in Europe

Lucía Mateos Romero, Inés P. Murillo Huertas and Mª del Mar Salinas Jiménez

Journal of Policy Modeling, 2017, vol. 39, issue 5, 909-927

Abstract: This paper analyzes the returns to education and educational mismatch in thirteen European countries taking account not only of years of education but also of cognitive skills actually acquired by workers. Using the PIAAC database, our results suggest that both years of education and skills contribute to determine wages, with higher returns to years of education as the level of skills increases. Educational and skills mismatches appear to be two different phenomena, with educational mismatch lying behind wages. It is also found that the higher the level of skills achieved by an individual, the higher the returns to years of required education or to years of overeducation. Policy implications are derived as regards educational mismatch, which reflects inefficiencies in the allocation of the educational resources, and as regards the relevance of cognitive skills, leaving room for improving the quality of education to fully take advantage of educational investments.

Keywords: Educational mismatch; Cognitive skills; Educational performance (search for similar items in EconPapers)
JEL-codes: I21 J31 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893817300868
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:jpolmo:v:39:y:2017:i:5:p:909-927

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-03-28
Handle: RePEc:eee:jpolmo:v:39:y:2017:i:5:p:909-927