Revista de Ciencias Económicas ISSN Impreso: 0252-9521 ISSN electrónico: 2215-3489

OAI: https://revistas.ucr.ac.cr/index.php/economicas/oai
Skill mismatch in the Costa Rican labor market
PDF (Español (España))
EPUB (Español (España))

Supplementary Files

MP3 (Español (España))

Keywords

SCHOOLING
HIGHER EDUCATION
HUMAN CAPITAL
MINCER EARNINGS FUNCTION
RATE OF RETURN
OCCUPATIONAL CHOICE
SKILL
OCCUPATIONAL TRAINING
EDUCACIÓN
EDUCACIÓN SUPERIOR
CAPITAL HUMANO
FUNCIONES DE INGRESO DE MINCER
TASAS DE RETORNO
DECISIÓN OCUPACIONAL
COMPETENCIAS
CAPACITACIÓN OCUPACIONAL

How to Cite

Blanco, L. C. (2019). Skill mismatch in the Costa Rican labor market. Revista De Ciencias Económicas, 37(2), 7–41. https://doi.org/10.15517/rce.v37i2.38868

Abstract

Skill mismatches are estimated using the National Household Survey 2011-2017, as defined by Chevalier (2003).  A logit multinomial analysis is used to study the covariates of skill mismatches and wage equations are analyzed as a function of the workers’ skill mismatches and competence levels.  The working adult population is found to have an underqualification level of 28.9%, while apparent and genuine overqualification levels are 13.3% and 0.8%, respectively.  Results show that underqualification is associated to a wage premium of about 30%, while apparent and genuine overqualification have a 35% and 47.5% wage penalty, respectively.  Graduates from tertiary institutions with an apparent overqualification level report a wage penalty of 38.9%, and it increases to 49.3% for those with a genuine overqualification level.

https://doi.org/10.15517/rce.v37i2.38868
PDF (Español (España))
EPUB (Español (España))

References

Alba-Ramírez, A. (1993). Mismatch in the Spanish labor market: overeducation? The Journal of Human Resources, 28(2), 259–278. https://doi.org/10.2307/146203

Allen, J., & Van der Velden, R. (2001). Educational mismatches versus skill mismatches: effects on wages, job satisfaction, and on-the-job search. Oxford Economic Papers, 53(3), 434–452. https://doi.org/10.1093/oep/53.3.434

Alpin, C., Shackleton, J.R. & Walsh, S. (1998). Over- and undereducation in the UK graduate labour market. Studies in Higher Education, 23(1), 17–34. https://doi.org/10.1080/03075079812331380462

Battu, H., Belfield, C. R., & Sloane, P. J. (1999). Overeducation among graduates: a cohort view. Education Economics, 7(1), 21–38. https://doi.org/10.1080/09645299900000002

Becker, G.S. (1962). Investment in human capital: a theoretical analysis. Journal of Political Economy, 70(5), 9–49. https://doi.org/10.1086/258724

Becker, G. (1993). Human capital. A theoretical and empirical analysis with special reference to education. Chicago: The University of Chicago Press and National Bureau of Economic Research.

Bennell, P. (1996). General vs technical secondary education in developing countries: a review of the rates of return evidence. The Journal of Development Studies, 33(2), 230–247. https://doi.org/10.1080/00220389608422464

Blau, F.D. (1999). Women’s economic well-being, 1970–1995: Indicators and trends. Focus, 20(1), 4–10.

Blau, F.D. y Kahn, L.M. (2007). The gender pay gap: have women gone as far as they can? Academy of Management Perspectives, 21(1), 7–23. https://doi.org/10.5465/amp.2007.24286161

Boll, C., Leppin, J., Rossen, A. & Wolf, A. (2016). Overeducation - new evidence for 25 European countries, HWWI Research Paper 173, Hamburg Institute of International Economics (HWWI).

Chevalier, A. (2003). Measuring over-education. Economica, 70(279), 509–531. https://doi.org/10.1111/1468-0335.t01-1-00296

Chevalier, A. (2011). Subject choice and earnings of UK graduates. Economics of Education Review, 30(6), 1187–1201. https://doi.org/10.1016/j.econedurev.2011.04.007

Chevalier, A., & Lindley, J. (2009). Overeducation and the skills of UK graduates. Journal of the Royal Statistical Society: Series A (Statistics in Society), 172(2), 307–337. https://doi.org/10.1111/j.1467-985X.2008.00578.x

de Grip, A., Bosma, H., Willems, D., & van Boxtel, M. (2008). Job-worker mismatch and cognitive decline. Oxford Economic Papers, 60(2), 237–253. https://doi.org/10.1093/oep/gpm023

Dolton, P. & Silles, M. (2001). Over-education in the graduate labour market: some evidence from alumni data. London: Centre for the economics of education, London School of Economics and Political Science.

Eichhorst, W., Rodríguez-Planas, N., Schmidl, R., & Zimmermann, K. F. (2015). A road map to vocational education and training in industrialized countries. ILR Review, 68(2), 314–337. https://doi.org/10.1177/0019793914564963

European Commission, Directorate General Education and Culture (2005). The returns to various types of investments in education and training. Disponible en: https://londoneconomics.co.uk/wp-content/uploads/2011/09/82-Study-on-the-returns-to-various-types-of-investment-in-education-and-training.pdf.

Fallas, C. (5 de agosto de 2015). Al menos 22 empresas han anunciado cierres y despidos en los últimos 19 meses. El Financiero. Disponible en: https://www.elfinancierocr.com/negocios/al-menos-22-empresas-han-anunciado-cierres-y-despidos-en-los-ultimos-19-meses/VMB4KD7CDRBJ7BJNB5ODZH7BSM/story/

Farooq, S. (2011). Mismatch between education and occupation: a case study of Pakistani graduates. The Pakistan Development Review, 50(4II), 531–553. https://doi.org/10.30541/v50i4IIpp

Farooq, S. (2015). Job mismatches in Pakistan: is there some wage penalty to graduates? The Pakistan Development Review, 54(2), 147–164. https://doi.org/10.30541/v54i2pp.147-164

Fernández, C. and Ortega, C. (2006). Labour market assimilation of immigrants in Spain: employment at the expense of bad-job matches?. (IESE Working Paper 644), University of Navarra.

Groot, W., & van den Brink, H.M. (2000). Overeducation in the labor market: A meta-analysis. Economics of Education Review, 19(2), 149–158. https://doi.org/10.1016/S0272-7757(99)00057-6

Heckman, J.J. (1976). The common structure of statistical models of truncation, sample selection and limited dependent variables and a simple estimator for such models. Annals of Economic and Social Measurement, 5(4), 475–492.

Instituto Nacional de Estadística y Censos (2014). Clasificación de Ocupaciones de Costa Rica COCR-2011. San José: INEC.

Instituto Nacional de Estadística y Censos (2016). Encuesta Nacional de Hogares, julio 2016: resultados generales. San José: INEC.

Instituto Nacional de Estadística y Censos (2018). Encuesta Nacional de Hogares 2011-2017. San José: INEC.

Instituto Nacional de Estadística y Censos (2019). Encuesta Continua de Empleo al tercer trimestre de 2019. Resultados generales. San José: INEC.

International Labour Organization (2012a). International Standard Classification of Occupations, Geneva: ILO.

International Labour Organization (2012b). International Standard Classification of Occupations, Annex 1. Geneva: ILO.

International Labour Organization (2014). Skills mismatch in Europe. Statistics Briefing, Geneva: ILO.

Jauhiainen, S. (2011). Overeducation in the Finnish regional labour markets: Overeducation and regional labour markets. Papers in Regional Science, 90(3), 573–588. https://doi.org/10.1111/j.1435-5957.2010.00334.x

Jovanovic, B. (1979). Job matching and the theory of turnover. Journal of Political Economy, 87(5, Part 1), 972–990. https://doi.org/10.1086/260808

Kucel, A. (2011). Literature survey of the incidence of over-education: a sociological approach. Revista Española de Investigaciones Sociológicas, (134), 125–142.

Marqués Perales, I. & Gil-Hernández, C.J. (2015). Origen social y sobreeducación en los universitarios españoles: ¿es meritocrático el acceso a la clase de servicio? Revista Española de Investigaciones Sociológicas, (150), 89–112. https://doi.org/10.5477/cis/reis.150.89

Mavromaras, K., McGuinness, S., & Fok, Y. K. (2009). Assessing the incidence and wage effects of over-skilling in the Australian labour market. Economic Record, 85(268), 60–72. https://doi.org/10.1111/j.1475-4932.2008.00529.x

McMillen, D.P., Seaman, P.T. & Singell Jr., L.D. (2007). A mismatch made in heaven: a hedonic analysis of overeducation and undereducation. Southern Economic Journal, 73(4), 901–930. https://doi.org/10.2307/20111934

Mincer, J. (1974). Schooling, experience and earnings. New York: Columbia University Press.

Montenegro, C.E. & Patrinos, H.A. (2013). Returns to schooling around the world. (Background papers for the World Development Report 2013).

Mumford, K. y Smith, P. N. (2009). What determines the part-time and gender earning gaps in Britain: evidence from the workplace. Oxford Economic Papers, 61(suppl_1), i56–i75. https://doi.org/10.1093/oep/gpn041

Ortiz, L. & Kucel, A. (2008). Do fields of study matter for over-education? The cases of Spain and Germany. International Journal of Comparative Sociology, 49(4–5), 305–327. https://doi.org/10.1177/0020715208093079

Pérez, D. (9 de enero de 2015). Salida de Wendy's eleva a más de 5.300 los desempleados por cierre de empresas. La Prensa Libre. Disponible en: http://www.laprensalibre.cr/Noticias/detalle/8304--salida-de-wendys-eleva-a-mas-de-5300-los-desempleados-por-cierre-de-empresas

Programa Estado de la Nación (2019). Informe Estado de la Nación 2019. San José: Servicios Gráficos AC 2019.

Quintini, G. (2011). Over-qualified or under-skilled: a review of existing literature. OECD Social, Employoment and Migration Working Papers, 121, Organisation for Economic Cooperation and Development. https://doi.org/10.1787/5kg58j9d7b6d-en

Sattinger, M. (1993). Assignment models of the distribution of earnings. Journal of Economic Literature, 31(2), 831–880.

Schleicher, A. (2017). Análisis de la OCDE acerca de las políticas nacionales para educación: la educación en Costa Rica. Organización para la Cooperación y el Desarrollo Económico. Disponible en: https://www.oecd.org/edu/school/La-Educacion-en-Costa-Rica-Resumen-Ejecutivo.pdf

Schultz, T.P. (1974). The economics of the family: marriage, children and human capital. National Bureau of Economic Research.Thurow, L.C. (1975) Generating Inequality. New York: Basic Books.

Sicherman, N. (1991). “Overeducation” in the labor market. Journal of Labor Economics, 9(2), 101–122. https://doi.org/10.1086/298261

Sicherman, N. & Galor, O. (1990). A theory of career mobility. Journal of Political Economy, 98(1), 169–192. https://doi.org/10.1086/261674

Sloane, P.J., Battu, H. & Seaman, P.T. (1999). Overeducation, undereducation and the British labour market. Applied Economics, 31(11), 1437–1453. https://doi.org/10.1080/000368499323319

Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

Sutherland, J. (2012). Qualifications mismatch and skills mismatch. Education + Training, 54(7), 619–632. https://doi.org/10.1108/00400911211265666

Thurow, L.C. (1975). Generating inequality. New York: Basic Books.

Verdugo, R.R. & Verdugo, N.T. (1988) Overeducation and the earnings of black, hispanic, and white male workers. Sociological Perspectives, 31(2), 190–212. https://doi.org/10.2307/1389082

Verhaest, D. & Omey, E. (2006). The impact of overeducation and its measurement. Social Indicators Research, 77(3), 419–448. https://doi.org/10.1007/s11205-005-4276-6

Comments

Downloads

Download data is not yet available.