In Search of a Better Match: Qualification Mismatches in Developing Asia

Kenn Chua () and Natalie Chun
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Kenn Chua: Asian Development Bank

No 476, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This paper empirically tests the role of search frictions in driving qualification mismatches in the labor market. Using new data from several low-income economies in urban Asia we find that overeducation in less developed labor markets are more pervasive than in more developed economies. Moreover, frictions related to search costs are a crucial determinant of match quality resulting in socially inefficient talent misallocation. Our findings suggest scope for policy interventions that improve worker-job matches with potential gains to wages and aggregate productivity.

Keywords: Asia; labor markets; matching; qualification mismatches; search (search for similar items in EconPapers)
JEL-codes: J20 J30 O12 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2016-02-26
New Economics Papers: this item is included in nep-sea
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0476

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