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Too Many Graduates? A Matching Theory of Educational Mismatch

Patrizia Ordine and Giuseppe Rose

Journal of Human Capital, 2017, vol. 11, issue 4, 423 - 446

Abstract: The process driving graduate workers into undergraduate jobs is investigated. Micro and macro perspectives are considered in order to analyze the interrelationships between individual mismatch and overeducation. The model highlights the fact that individual mismatch does not necessarily imply that the share of graduates exceeds what is optimally required at the aggregate level. In the presence of matching frictions, individual mismatch may be associated with either under- or overeducation. Policies regulating access to higher education may affect mismatch in different ways, depending on the situation in question. In some cases, measures aimed at promoting participation in higher education may help reduce the incidence of mismatch.

Date: 2017
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