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Education and Skills Mismatch in the Italian Graduate Labour Market

Giorgio Di Pietro () and Peter Urwin

No 59, Royal Economic Society Annual Conference 2003 from Royal Economic Society

Abstract: This paper focuses on education and skills mismatch amongst Italian graduates. Indicators for over and under-utilisation of education and under-utilisation of skills are included in a grouped data lognormal wage equation, allowing us to test a number of theories which could explain the effect of over-schooling on wages. We find little evidence to support assignment theory and also identify a relatively weak wage effect arising from educational mismatch associated with the formal requirements of a job, when compared to that associated with an employeeÕs perception of the job requirements. Our interpretation is that employers may be mis-specifying jobs as ÔgraduateÕ jobs in order to take advantage of an excess supply of graduates.

Keywords: over-education; skill under-utilisation; wages; on-the-job search (search for similar items in EconPapers)
JEL-codes: I21 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-lab
Date: 2003-06-04
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Journal Article: Education and skills mismatch in the Italian graduate labour market (2006) Downloads
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