Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/69374 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 7093
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
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.
Subjects: 
educational mismatch
productivity
linked panel data
GMM
JEL: 
I21
J24
Document Type: 
Working Paper

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