Education outcomes and the labor market
Obiols-Homs, F. and
Virginia Sanchez-Marcos ()
Labour Economics, 2018, vol. 54, issue C, 14-28
The quality of education appears to be negatively correlated with both the overeducation of workers at the tasks they perform and the unemployment rate across EU-15 countries, and positively correlated with the wage premium associated to tertiary education. We develop a model of the labor market with frictions to quantitatively investigate the impact of the education outcomes on the labor market. We show that both the ability of educated and non educated workers have sizable effects on the incentives of firms regarding the type of vacancies they open and also regarding the incentives of educated workers as of where to search for a job. Therefore education outcomes are relevant to understand the overeducation phenomena observed in the labor market. According to our quantitative analysis had the quality of education observed in Spain been similar to the European average then the overeducation rate would have been between 5 and 10 percentage points lower and the unemployment rate of the two types of workers would be reduced by 40%, but the tertiary education wage premium would be slightly smaller than in the benchmark economy.
Keywords: Occupational-mismatch; Tertiary education wage premium; Ability (search for similar items in EconPapers)
JEL-codes: I26 J21 J24 (search for similar items in EconPapers)
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
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:54:y:2018:i:c:p:14-28
Access Statistics for this article
Labour Economics is currently edited by A. Ichino
More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().