The skill match of young graduate employees: An empirical analysis based on REFLEX data

Transcription

1 The skill match of young graduate employees: An empirical analysis based on REFLEX data Francesca Sgobbi DIMI-University of Brescia (I) & DINAMIA-CET (P) DEHEMS Conference WU Vienna University of Economics and Business, Vienna, September 2011

2 The research issue The determinants of educational match and skill match among young graduates

3 Research rationale (I) Matching between required and provided skills is desirable for employees (better return to investment in skills, higher satisfaction) for employers (no skill shortage, enables innovation/change processes) for the PA (success of public education and VET systems and related policies)

4 Research rationale (II) A large body of empirical analyses exists, however focus on educational mismatch as a proxy for skill mismatch (yet, significant recent attention to direct measures of skill mismatch) focus on supply-side effects focus on overeducation/overskilling (undereducation/underskilling overlooked especially in the case of university graduates)

5 Research rationale (III) The analysis of the determinants of educational and skill match provides indications on enabling factors/obstacles relevant for all actors in the labour market The data REFLEX sample of young Italian graduates

6 Educational mismatch: objective and subjective measures DEHEMS Conference, September 2011

7 Qualified educational mismatch 100% 11,75% 4,70% 20,12% 22,72% 58,81% 67,43% Genuine vs. Apparent mismatch (Chevalier and Lindley, 2009) 0% 9,32% First job Qualificatin match and skill underutilisation Matched Formal overqualification Real vs. Formal mismatch (Green and Zhu, 2010) 5,15% Current job Real overqualification

8 Skill mismatch Overskilling/Underskilling Type of skill mismatch Skill deficit

9 Objective educational msm, First job DEHEMS Conference, September 2011 State transitions (I) Objective educational mismatch. Transitions between first and current job Objective educational msm, Current job Undereducation Match Overeducation Total Undereducation Count % of total Match Count 2 1, % of total Overeducation Count % of total Total Count 108 1, ,448 % of total

10 Subjective educational msm, First job DEHEMS Conference, September 2011 State transitions (II) Subjective educational mismatch. Transitions between first and current job Subjective educational msm, Current job Undereducation Match Overeducation Total Undereducation Count % of total Match Count ,418 % of total Overeducation Count % of total Total Count 339 1, ,440 % of total

11 Type of skill msm, Fist job DEHEMS Conference, September 2011 State transitions (III) Skill mismatch. Transitions between first and current job Type of skill msm, Current job Wrong skills Skill shortage Skill match Skill surplus Total Wrong skills Count % of total Skill shortage Count % of total Skill match Count , ,414 % of total Skill surplus Count % of total Total Count , ,454 % of total

12 The return to education and skill mismatch All Men Women Std. error Std. error Std. error Objective educational mismatch (reference category: educational match) Overeducation dummy Undereducation dummy Subjective educational mismatch (reference category: educational match) Overeducation dummy Undereducation dummy Overskilling/Underskilling (reference category: skill match) Overskilling Underskilling Skill mismatch (reference category: skill match) Skill surplus Skill shortage Wrong skills Skill deficit Managerial_deficit Professional_deficit Communication_deficit Apparent/Genuine objective educational mismatch (reference category: educational match) Genuine overeducation Apparent overeducation Genuine undereducation Apparent undereducation Formal/Real overqualification/underqualification (reference category: real match) Real overqualification Formal overqualification Qual. match with skill underutilisation Qual. match with skill deficit Formal underqualification Real underqualification

13 The drivers of objective educational mismatch Std. Error Exp( ) Std. Error Exp( ) Overeducation Intercept ** Undereducation Intercept edu_msm_first *** edu_msm_first *** Underskilling_FirstJ ** Underskilling_FirstJ Overskilling_FirstJ Overskilling_FirstJ *** Uni_grade * Uni_grade Field_competence Field_competence Recent_training Recent_training *** Further_qualification ** Further_qualification *** Temporary_first Temporary_first Part_time_first Part_time_first Industry_change Industry_change ** Firm_change Firm_change ** Task_change Task_change *** Public *** Public * Female_worker ** Female_worker EduParent_Medium EduParent_Medium ** EduParent_High EduParent_High ** Ptime_student * Ptime_student ** 0.455

14 The drivers of qualification mismatch (I) Std. Error Exp( ) Std. Error Exp( ) Real overqualification Formal overqualification Intercept * edu_msm_first *** *** Underskilling_FirstJ * * Overskilling_FirstJ *** *** Uni_grade ** Field_competence *** Recent_training Further_qualification *** * Temporary_first Part_time_first ** Industry_change Firm_change Task_change Public ** *** Female_worker ** ** EduParent_Medium EduParent_High Ptime_student * 1.364

15 The drivers of qualification mismatch (II) Real underqualification Formal underqualification Intercept ** edu_msm_first *** *** Underskilling_FirstJ *** Overskilling_FirstJ *** Uni_grade Field_competence Recent_training *** Further_qualification *** * Temporary_first *** Part_time_first Industry_change ** Firm_change ** ** Task_change *** Public *** Female_worker EduParent_Medium *** EduParent_High ** Ptime_student **

16 Preliminary conclusions Higher matching for younger higher education graduates in Italy compared to other industrialised countries Educational mismatch and skill mismatch matter The aggregate categories of overeducation and undereducation mask differentiated combinations of educational and skill mismatch, often affected by distinct drive Strong path dependence: (mis)match in 1 st job after graduation conditions subsequent adjustments Need to focus attention on segmented, multi-dimensional measures rather than on aggregate measures of overeducation, undereducation and matching