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The Effect of Educational Mismatch on the Turkish Manufacturing Industry

Halit Yanikkaya () and Pinar Tat ()
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Halit Yanikkaya: Department of Economics, Gebze Technical University
Pinar Tat: Department of Economics, Gebze Technical University

No 2019-02, Working Papers from Gebze Technical University, Department of Economics

Abstract: This article explores educational mismatch for twenty-three different Turkish industrial sectors using all available household surveys from 2004 to 2015. Our aim is to first evaluate the educational mismatch level in the Turkish industrial sectors and then analyze its effects on the sectoral total factor productivity, labor productivity, and wages. For the sectoral total factor productivity, our dynamic panel data estimations suggest that the modal value of education increases the growth rate of total factor productivity. Therefore, the widespread existence of educational mismatch implies the efficiency loss in Turkish manufacturing sector for the period of 2004-2015. For the sectoral labor productivity, the modal value of education and the mean value of over-education increases labor productivity whereas the mean value of under-education decreases it. These results clearly imply that the human capital theory overcomes the job satisfaction theory for the Turkish industrial industry because the mean years of over-education increases the sectoral labor productivity. For the sectoral wages, the mean value of over-education raises wages.

Keywords: educational mismatch; total factor productivity; labor productivity; wages; Turkey; industrial sectors (search for similar items in EconPapers)
JEL-codes: E24 I25 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-eff and nep-mac
Date: 2019-03-04
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ftp://ftp.gtu.edu.tr/econwp/gtuwp-2019-02.pdf First version, 2019 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:geb:wpaper:2019-02

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