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2017 (English) Report (Other academic)
Abstract [en] Educational mismatch in the form of over- and under-educated workers has long been studied in relation to labor market outcomes for individual workers. While its consequences for individual workers and society are dire, we have only anecdotal evidence of its consequences for rms competitiveness. To bridge this gap, this paper studies the impact of mismatch on rm productivity, wages and pro t. The results suggest an asymmetric e ect from employing over- and under-educated workers. We nd that while employing over-educated workers add to wage cost, there are no matching productivity gains, By contrast, the performance of under-educated workers more than compensates for their wage costs, leading to increased pro ts at the rm level. The net e ect, therefore, in the form of gross operating surplus is signi cantly negative (positive) when rms employ over- (under-)educated workers. The results suggest that the positive e ects primarily stem from under-educated young workers, whereas the losses can be traced to over-educated older workers.
Place, publisher, year, edition, pages
Stockholm: Ratio, 2017. p. 34
Series
Ratio Working Paper ; 291
Keywords Educational mismatch, Productivity, Labor cost, Profits, Proxy variable
National Category
Economics
Research subject
Baltic and East European studies
Identifiers urn:nbn:se:sh:diva-59979 (URN)
Funder The Foundation for Baltic and East European Studies, 52/2016Vinnova
2026-05-122026-05-122026-05-12 Bibliographically approved