Filiztekin, Alpay (2011): Education-occupation mismatch in Turkish labor market.
Download (135kB) | Preview
There is a consensus that one of the most important ingredients for high and sustainable growth is human capital accumulation. Yet, a different strand of literature argues that there are some frictions in the labor markets of most countries that result in possible education-occupation mismatches, and consequently inefficiencies. Despite a significant amount of research using data from advanced economies there are very few studies on developing economies. Considering that human capital is scarce in these countries, whether it is efficiently allocated is arguably relatively more important. This paper using data from two different years examines the incidence of overeducation in Turkey. The findings show that there is a significant amount of over- and undereducated workers, and they are paid significantly less than those with the same level of education but working in jobs that require education levels that match their own. The magnitude of the incidence and the impact of mismatches on wages are, however, not too different than in most developed economies.
|Item Type:||MPRA Paper|
|Original Title:||Education-occupation mismatch in Turkish labor market|
|Keywords:||human capital, overeducation, returns to schooling, Turkey|
|Subjects:||A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics > A20 - General|
|Depositing User:||Alpay Filiztekin|
|Date Deposited:||01. Dec 2011 19:03|
|Last Modified:||16. Feb 2013 10:23|
Barro, R., (1991), Economic growth in a cross-section of countries. Quarterly Journal of Economics, 106(2), 407-443.
Becker, G. (1964), Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Columbia University Press, New York.
Duncan, G., and Hoffman, S. (1981), The incidence and wage effects of overeducation. Economics of Education Review, 1(1), 75-86.
Duygan. B., and Guner, N. (2006), Income and consumption inequality in Turkey: What role does education play? In Altug, S. and A. Filiztekin (eds.), The Turkish Economy: The real economy, corporate governance and reform, Routledge, London.
Frank, R.H. (1978), Why women earn less: the theory and estimation of differential overqualification. American Economic Review, 68(3), pp. 360-373.
Galasi, P. (2008), The effect of educational mismatch on wages for 25 countries. Budapest Working Papers on Labor Market, BWP 2008/8.
Gottschalk P., and Hansen, M. (2003), Is the proportion of college workers in noncollege jobs increasing. Journal of Labor Economics, 21(2), 449-471.
Groot, W. and van den Brink, H. (2000), Overeducation in the labor market: A meta analysis. Economics of Education Review, 19(2), 149-158.
Jovanovic, B. (1979), Job matching and the theory of turnover. Journal of Political Economy, 87(5), 972-990.
Kicker, B.F., Santos, M.C., and De Oliveira, M.M. (1997), Overeducation and undereducation: Evidence for Portugal. Economics of Education Review, 16(2), 111-125.
Lucas, R. (1988), On the mechaniscs of economic development. Journal of Monetary Economics, 22, 3-42.
Mankiw, N.G., Romer, D., and Weil, D. (1992), A contribution to the empirics of economic growth. Quartery Journal of Economics, 107(2), 407-437.
Mincer, J. (1974), Schooling, Experience and Earnings, Columbia University Press, New York.
Mortensen, D.T., and Vishwanath, T. (1994), Personal contacts and earnings: It is who you know! Labour Economics, 1(2), 187-201.
Ng, Y.C. (2001), Overeducation and undereducation and their effect on earnings: Evidence from Hong Kong, 1986-1996. Pacific Economic Review, 6(3), 401-418.
Quinn, M.A. and Rubb, S. (2006), Mexico's labor market: The importance of education-occupation matching on wages and productivity in developing countries. Economics of Education Review, 25, 147-156.
Sattinger, M. (1993), Assignment models of the distribution of wages. Journal of Economic Literature, 31(2), 831-880.
Sicherman, N. and Galor, O. (1990), A theory of career mobility. Journal of Political Economy, 98(1), 169-192.
Spence, M. (1973), Job market signalling. Quarterly Journal of Economics, 87, 355-374.
Tansel, A. and Bircan F. (2010), Wage inequality and returns to education in Turkey: A quantile regression analysis. Koc University-TUSIAD ERF working paper.
Thurow, L.C. (1975), Generating Inequality. Basic Books, New York.
Tunali, I. (2003), Comparison of Wage Equation Estimates: 1988 HLFS, 1994 IDS, 2002 HBS. Mimeo. Koç University, Istanbul, Turkey.
Tunali. I., and Baslevent, C. (2006), Female labor supply in Turkey. In Altug, S. and A. Filiztekin (eds.), The Turkish Economy: The real economy, corporate governance and reform, Routledge, London.
Verdugo, R.R. and Verdugo, N.T. (1989), The impact of surplus schooling on wages. Journal of Human Resources, 24(4), 629-643.