Skill mismatch in the Costa Rican labor market

Laura Cristina Blanco

Revista de Ciencias Económicas, 2019, vol. 37, issue 2

Abstract: Skill mismatches are estimated using the National Household Survey 2011-2017, as defined by Chevalier (2003). A logit multinomial analysis is used to study the covariates of skill mismatches and wage equations are analyzed as a function of the workers’ skill mismatches and competence levels. The working adult population is found to have an underqualification level of 28.9%, while apparent and genuine overqualification levels are 13.3% and 0.8%, respectively. Results show that underqualification is associated to a wage premium of about 30%, while apparent and genuine overqualification have a 35% and 47.5% wage penalty, respectively. Graduates from tertiary institutions with an apparent overqualification level report a wage penalty of 38.9%, and it increases to 49.3% for those with a genuine overqualification level.

Keywords: SCHOOLING; HIGHER EDUCATION; HUMAN CAPITAL; MINCER EARNINGS FUNCTION; RATE OF RETURN; OCCUPATIONAL CHOICE; SKILL; OCCUPATIONAL TRAINING; EDUCACIÓN; EDUCACIÓN SUPERIOR; CAPITAL HUMANO; FUNCIONES DE INGRESO DE MINCER; TASAS DE RETORNO; DECISIÓN OCUPACIONAL; COMPETENCIAS; CAPACITACIÓN OCUPACIONAL (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2019
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