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The effects of over- and undereducation on firm productivity
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

The aim of this thesis is to investigate what the effects are of over- and undereducation of workers on the productivity of the firm where they are working. Mismatches are estimated by a comparison of the education level attained by the individual and the education level required by the employer, both are calculated as firm mean values. These estimates are then used to relate educational mismatch to the productivity (which is measured by total factor productivity, TFP and value added per worker) of thefirm where the individual is employed. TFP is estimated using the Levinsohn and Petrin estimation logarithm. The data used is a rich data set with many observations and variables. The results indicate that both overeducation and undereducation is detrimental for firm productivity, and that more productive firms suffer more from negative mismatch than less productive firms.

Place, publisher, year, edition, pages
Keyword [en]
overeducation, undereducation, productivity, education, mismatch, value added, total factor productivity
National Category
URN: urn:nbn:se:uu:diva-226539OAI: oai:DiVA.org:uu-226539DiVA: diva2:726360
Available from: 2014-06-18 Created: 2014-06-18 Last updated: 2014-06-18Bibliographically approved

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