EDUCATION, MISMATCH AND UNEMPLOYMENT

Gianluca Femminis and Giulio Piccirilli ()
Additional contact information
Giulio Piccirilli: Universitas Mercatorum, Roma

Rivista Internazionale di Scienze Sociali, 2019, vol. 127, issue 3, 285-312

Abstract: We study an economy where the labour market is plagued with search imperfections and is segmented along a set of professions. To enter a profession, workers need to undertake a specific educational investment. At the time of the investment, however, workers are imperfectly informed on the outlook offered by any profession as they only observe a private and a public signal concerning this outlook. We show that imperfect information induces misallocation of labour across professions and increases the rate of unemployment. We also show that, contrary to the policy advice of some labour market observers, an increase in the precision of the public signal does not necessarily lead to a reduction in the rate of unemployment.

Keywords: Returns to Education; Occupational Choice; Information Processing (search for similar items in EconPapers)
JEL-codes: D83 I26 J24 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://riss.vitaepensiero.it/scheda-articolo_digi ... 003_0285-369608.html (text/html)
Yes

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:vep:journl:y:2019:v:127:i:3:p:285-312

Access Statistics for this article

Rivista Internazionale di Scienze Sociali is currently edited by Maurizio Baussola

More articles in Rivista Internazionale di Scienze Sociali from Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore
Bibliographic data for series maintained by Vep - Vita e Pensiero ().