The Impact of Educational Mismatch on Firm Productivity: Evidence from Linked Panel Data

http://ftp.iza.org/dp7093.pdf

Stephan Kampelmann. François Rycx.
We provide first evidence regarding the direct impact of educational mismatch on firm
productivity. To do so, we rely on representative linked employer-employee panel data for
Belgium covering the period 1999-2006. Controlling for simultaneity issues, time-invariant
unobserved workplace characteristics, cohort effects and dynamics in the adjustment
process of productivity, we find that: i) a higher level of required education exerts a
significantly positive influence on firm productivity, ii) additional years of over-education (both
among young and older workers) are beneficial for firm productivity, and iii) additional years
of under-education (among young workers) are detrimental for firm productivity.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s