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Book part
Publication date: 11 May 2017

Müge Adalet McGowan and Dan Andrews

This paper explores the link between skill and qualification mismatch and labor productivity using cross-country industry data for 19 OECD countries. Utilizing mismatch indicators…

Abstract

This paper explores the link between skill and qualification mismatch and labor productivity using cross-country industry data for 19 OECD countries. Utilizing mismatch indicators aggregated from micro-data sourced from the recent OECD Survey of Adult Skills (PIAAC), the main results suggest that higher skill and qualification mismatch is associated with lower labor productivity, with over-skilling and under-qualification accounting for most of these impacts. A novel result is that higher skill mismatch is associated with lower labor productivity through a less efficient allocation of resources, presumably because when the share of over-skilled workers is higher, more productive firms find it more difficult to attract skilled labor and gain market shares at the expense of less productive firms. At the same time, a higher share of under-qualified workers is associated with both lower allocative efficiency and within-firm productivity – that is, a lower ratio of high productivity to low productivity firms. While differences in managerial quality can potentially account for the relationship between mismatch and within-firm productivity, the paper offers some preliminary insights into the policy factors that might explain the link between skill mismatch and resource allocation.

Article
Publication date: 7 September 2012

John Sutherland

The purpose of this paper is to estimate the extent of “over‐qualification” (i.e. holding a qualification which is above that required to gain entry to the job being done) and…

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Abstract

Purpose

The purpose of this paper is to estimate the extent of “over‐qualification” (i.e. holding a qualification which is above that required to gain entry to the job being done) and “skills under‐utilisation” (i.e. being in a job which does not make use of the knowledge and skills possessed) in the United Kingdom and to examine whether these conditions are correlated with age.

Design/methodology/approach

The paper makes use of the 2006 Skills Survey. Cross tabulations of both conditions with age are produced and binomial probit estimates of both conditions are reported.

Findings

It is estimated that 38 per cent are over qualified; 15 per cent are in jobs which do not make use of the knowledge and skills they possess; and age is correlated with the probability of being over qualified but not with the condition of under‐utilising the knowledge and skills possessed.

Social implications

Skills policy in the United Kingdom focuses almost exclusively upon increasing the supply of more highly qualified individuals. Given the extent of over‐qualification and skills under‐utilisation demonstrated in the paper, more effort should be made by policy makers to design and implement policies which increase the demand for highly skilled labour.

Originality/value

The paper answers three questions: How prevalent are qualification mismatches? How prevalent are skills mismatches? To what extent are the two conditions of being over‐qualified and being in a job which does not offer scope to make use of the knowledge and skills possessed correlated with age?

Details

Education + Training, vol. 54 no. 7
Type: Research Article
ISSN: 0040-0912

Keywords

Open Access
Article
Publication date: 25 October 2019

Huy Le Quang and Binh Tran-Nam

The purpose of this paper is to investigate the incidence and earning effects of the vertical mismatch between attained and required educational qualifications in a developing…

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Abstract

Purpose

The purpose of this paper is to investigate the incidence and earning effects of the vertical mismatch between attained and required educational qualifications in a developing country’s labor market.

Design/methodology/approach

Following Duncan and Hoffman (1981), this paper uses the augmented Mincerian wage equation to decompose the actual years of education of a person into years of over-education, years of required education and years of under-education. These years of education are then fitted in an ordinary least squares model to measure the earning effects of an employee when his/her attained educational qualifications are higher or lower than the required educational level in his/her job.

Findings

Unlike studies in developed countries, this paper finds that Vietnam has a higher incidence of under-education than over-education due to a large proportion of the population in rural and remote areas not having access to formal education. Further, qualification mismatch has an asymmetric effect on earnings in the sense that the wage rate is flexible downward but rigid upward. In particular, years of schooling that are in excess or in deficit of the required level for the job are not compensated with higher earnings. This paper concludes that although qualification mismatch incidence in Vietnam is different from that in developed countries, mismatched workers also suffer from significant wage penalty.

Originality/value

This paper makes a significant contribution by providing the first evidence from a developing country to the vertical mismatch literature which has already been overwhelmed with studies from advanced economies.

Details

Journal of Economics and Development, vol. 21 no. 2
Type: Research Article
ISSN: 2632-5330

Keywords

Article
Publication date: 1 June 2015

Mukta Kulkarni, Mark L. Lengnick-Hall and Patricia G. Martinez

The purpose of this paper is to examine how employers define overqualification and mismatched qualification and whether they are willing to hire applicants whose educational and…

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Abstract

Purpose

The purpose of this paper is to examine how employers define overqualification and mismatched qualification and whether they are willing to hire applicants whose educational and work experience credentials do not match job requirements.

Design/methodology/approach

This paper draws from qualitative interview data from 24 hiring managers across a wide range of US public sector and private industries. Data were analyzed and coded to identify themes related to managers’ perceptions of overqualification, matched, and mismatched qualification, and how these were related to selection decisions. A typology is proposed for categorizing applicant qualification levels and their potential human resource outcomes such as hiring decisions.

Findings

Hiring managers report that they are willing to interview and hire individuals whose education or experience exceed a job’s requirements as well as applicants with less than required education, but only if they possess sufficient compensatory experience.

Research limitations/implications

Findings may not apply to industries where minimum educational levels are essential or to small organizations with few opportunities for career advancement.

Social implications

Given current unemployment and underemployment levels, the findings can inform the job search strategies of job seekers. Overqualified applicants should not refrain from applying to job openings, particularly in organizations with opportunities for advancement and where education is considered an asset. Additionally, applicants should reveal their motivations for pursing positions that are intentional mismatches.

Originality/value

In contrast to previous studies conducted during periods of lower unemployment and underemployment, these data include managers’ perceptions of overqualification in a recession and post-recession job market context and thus are especially relevant to today’s employment context. The proposed typology distinguishes between categorizations of qualified, overqualified, and underqualified, and helps refine studies aimed at selection decisions.

Details

Personnel Review, vol. 44 no. 4
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 12 November 2018

Manuel Salas-Velasco

Recent studies have linked differences in aggregate productivity to misallocation of resources across firms. In contrast, the purpose of this paper is to study the macroeconomic…

Abstract

Purpose

Recent studies have linked differences in aggregate productivity to misallocation of resources across firms. In contrast, the purpose of this paper is to study the macroeconomic performance of OECD economies from a production efficiency point of view and estimated the determinants of (in)efficiency with particular emphasis on misallocation of labor.

Design/methodology/approach

Following the pioneering work of Battese and Coelli, the authors proposed a parametric methodology to construct a world frontier that serves as a benchmark to compare the relative position of each country. The non-negative technical inefficiency effects are assumed to be a function of explanatory variables. By doing this, determinants of technical inefficiency are explicitly introduced in the model.

Findings

The results revealed that OECD countries to operate efficiently should expand their aggregate output by 22.6 percent without consuming more resources. A novel finding is that higher skill mismatch is associated with higher production inefficiency. Conversely, more flexible labor markets, and better management and human resource practices, lowered the inefficiency in production. The paper also analyzed the underlying factors driving skill misallocation in the job market. In this regard, a well-functioning education and training system and greater flexibility in the determination of wages are associated with lower levels of mismatch between the skills of individuals and those required by the jobs.

Practical implications

The measurement of the productive efficiency of an economy (or country) is crucial to governments. It is important to know how far a given economy can be expected to increase its output by simply increasing its efficiency, without absorbing further resources. In other words, it is relevant to know if a country could produce more with the same resources and, therefore, could increase per capita income and welfare. In this type of analysis what also matters is to identify what factors or variables explain that greater or lesser ability of a country to convert its resources into aggregate production.

Originality/value

Much research on efficiency measurement has focused on the firm or industry level, mainly to study the efficiency of financial institutions. Efficiency studies using aggregated data across countries are rare in the literature of efficiency. This paper aimed to contribute to filling that shortage evaluating the macroeconomic performance of a sample of OECD countries from the production efficiency point of view.

Article
Publication date: 6 February 2019

Kamalbek Karymshakov and Burulcha Sulaimanova

The purpose of this paper is twofold: first, it analyses the relationship between educational level, the school-to-work transition period for youth and positions which suffer from…

Abstract

Purpose

The purpose of this paper is twofold: first, it analyses the relationship between educational level, the school-to-work transition period for youth and positions which suffer from an education-job mismatch in Kyrgyzstan; and second, it investigates the effect of the education-job mismatch on the wages of youth in Kyrgyzstan.

Design/methodology/approach

The study uses the International Labor Organization 2013 data from the school-to-work transition survey for Kyrgyzstan. The Kaplan–Meier failure analysis is employed to demonstrate the relationship between school-to-work transition and mismatch status. To investigate the effect of an education-job mismatch on wages, a Mincer-type equation with OLS estimations is used. Along with this, taking into consideration potential unobserved heterogeneity issue, a propensity score matching method is applied.

Findings

The results indicate a large difference between those with tertiary education and those with non-tertiary education in terms of the probability of being employed with a wrong match. Young individuals without tertiary education are more likely to be employed with a right match. Analysis of the impact of overeducation on wages shows that the impact of overeducation depends on how it is measured. According to the objective approach, overeducated male individuals receive low wages compared to well matched, but estimation results based on the total sample of subjective approach indicate the positive effects of overeducation on wage.

Originality/value

This paper contributes to the existing literature on the school-to-work transition and overeducation by focusing on one of the transition economies, which has been largely neglected by the literature.

Details

International Journal of Manpower, vol. 40 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 25 October 2022

Murat Yeşiltaş, Hasan Evrim Arici and Ümit Sormaz

This study aims to examine how perceived overqualification (POQ) influences employee knowledge hiding (KH) behaviors. This study further investigates the mediating effect of…

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Abstract

Purpose

This study aims to examine how perceived overqualification (POQ) influences employee knowledge hiding (KH) behaviors. This study further investigates the mediating effect of relative deprivation (RD) and the moderating effect of ego depletion (ED), jointly leading to moderated-mediation analysis.

Design/methodology/approach

Having used a time lag, a total of 850 hotel employees participated in Time 1, and data was gathered from 732 hotel employees in Time 2. Using PROCESS macro, a moderated-mediation analysis was performed to examine the hypothesized relationships.

Findings

This study’s findings display that POQ has a positive impact on KH. Moreover, RD plays a mediating role and ED has a moderating role in the direct and indirect associations between POQ and KH.

Practical implications

The findings suggest that hospitality and tourism (H&T) practitioners need to structure job positions, particularly job descriptions and specifications, by considering employee qualifications. They could encourage qualified employees to participate in the decision-making process which can increase the likelihood of their knowledge sharing and naturally limit KH behaviors.

Originality/value

In addition to adding to the burgeoning literature on POQ in the H&T sector, this study advances research on the RD and ED theories by statistically analyzing the link between POQ and employee KH. By considering RD as a mediator, a better comprehension is provided concerning “how” POQ associates with employee KH. By introducing ED as a moderator, researchers could better understand “when” POQ significantly associates with employee KH.

Details

International Journal of Contemporary Hospitality Management, vol. 35 no. 5
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 29 April 2014

Meera Alagaraja, Pradeep Kotamraju and Sehoon Kim

This paper aims to review technical vocational education and training (TVET) literature, identify different components of the TVET system and develop a conceptual framework that…

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Abstract

Purpose

This paper aims to review technical vocational education and training (TVET) literature, identify different components of the TVET system and develop a conceptual framework that integrates human resource development (HRD) and national human resource development (NHRD) outcomes. The renewed focus on technical vocational education and training (TVET) is important for human resource development (HRD), as it expands current understanding of its role in economic development through workforce training. National human resource development (NHRD) perspectives recognize the role of TVET in linking regional and national economic development strategies. Furthermore, TVET’s focus on literacy education, poverty alleviation and inclusion of marginalized and vulnerable populations emphasizes social development outcomes that are critical for NHRD. Using this background, the integration of HRD and NHRD outcomes into one conceptual TVET framework for addressing workforce, economic and social development outcomes has been proposed.

Design/methodology/approach

A targeted literature review approach was used for exploring relevant research on TVET systems, identifying the components which support and/or inhibit its effectiveness and an integrative framework that connects education, workforce development, social development and economic development was developed.

Findings

Three major themes were identified. The first theme identifies nine sub-themes that make an effective TVET system. These are as follows: national TVET policy, regional TVET policy, training, participation, curriculum, coordination of stakeholder institutions, individual and institutional attitudes toward skill development, managing supply-demand mismatches and economic and social development outcomes. The second major theme underlines the increasing overlap and connection between workforce development, social development and economic development strategies. In the third and final finding, effective TVET systems are positioned as the linking pin connecting the four TVET components (skills, education, innovation and knowledge) to the strategic goals of workforce development, economic development and social development.

Originality/value

Integrating national and organizational-based HRD strategies is a unique focus and reflects the broader examination of the differences in the relationship between corporate HRD and more traditional TVET systems. It is argued that the role of TVET in social and workforce development at the regional and societal level cannot be ignored. HRD and NHRD outcomes were integrated by utilizing TVET as a framework for linking economic, social and workforce development strategies.

Details

European Journal of Training and Development, vol. 38 no. 4
Type: Research Article
ISSN: 2046-9012

Keywords

Article
Publication date: 16 January 2019

Maryna Tverdostup and Tiiu Paas

The purpose of this paper is to address the role of cognitive skills and extent of skill use at work in explaining the immigrant–native wage gap in Europe. The study targets…

Abstract

Purpose

The purpose of this paper is to address the role of cognitive skills and extent of skill use at work in explaining the immigrant–native wage gap in Europe. The study targets immigrant–native disparities in literacy and numeracy cognitive skills, as important, yet not exhaustive factor behind immigrants’ wage penalty.

Design/methodology/approach

The research relies on the Program of International Assessment of Adult Competencies data for 15 European countries. The empirical analysis employs multivariate regression analysis and incorporates the full set of plausible values for each skill domain, to correctly measure cognitive skills. To estimate standard errors, the authors employ Jackknife replication methodology with 80 replication weights and final population weight.

Findings

The authors document that, on average, immigrants achieve substantially worse scores in literacy and numeracy test domains. Only highly educated immigrants tend to improve their skills over time in host countries. The results of wage gap analysis indicate that having cognitive skills, demographic profile and occupation category comparable to natives does not yield comparable wage rate. The remaining wage gap results from the systematic differences in skills application at work, as immigrants use their skills to lower extent, relative to natives.

Originality/value

The research employs a novel measure of productive human capital, which accounts for cognitive skills in literacy and numeracy domains, and frequencies of skill use at work. It allows to more precisely evaluate the immigrant–native disparity in human capital application and its reflection on the wage rate.

Details

International Journal of Manpower, vol. 40 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 24 March 2020

Ugochukwu Chinonso Okolie, Chinyere Augusta Nwajiuba, Michael Olayinka Binuomote, Christian Ehiobuche, Ntasiobi Chikezie Nwankwo Igu and Ogungboyega Suliyat Ajoke

This study explores how career training with mentoring (CTM) programs work in Nigerian higher education (HE) institutions to foster students' career development and employability…

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Abstract

Purpose

This study explores how career training with mentoring (CTM) programs work in Nigerian higher education (HE) institutions to foster students' career development and employability of graduates. It also explores how Nigerian HE curriculum can be adequately used to facilitate CTM as well as possible constraints to effective implementation of CTM programs in Nigerian HE institutions.

Design/methodology/approach

The study draws on interviews with well-qualified and experienced experts from six Nigerian public universities (each from the 6 geo-political zones of Nigeria), and 20 industries also within the same 6 geo-political zones of Nigeria that were selected for this study using a purposeful sampling technique. The study interviewed 33 experts comprising 21 senior academics at Nigerian universities and 12 industry executives to reveal substantial information about CTM programs in Nigerian HE institutions.

Findings

Drawing on the three key themes that emerged during the thematic analysis and linked to social cognitive career theory, it is clear that participants are convinced that CTM can enhance clarity about students' career ambitions, career interests, personal development plans and employability. Findings show that there are some career-related programs or activities that Nigerian HE students are presented with, but the programs have not been effective as to offer graduates quality career guidance and employability skills that employers demand. Acknowledging these, participants recommend establishing CTM centres in all Nigerian HE institutions to provide students with the opportunity to receive quality career advice, coaching and mentoring services while schooling.

Practical implications

The findings of this study shed light on varying resources required to cope with the demands of labour market in terms of supply of competent workforce that can contribute to Nigeria's economic growth and development. The findings are highly relevant for Nigeria and other developing countries' policy and research initiatives that aim to promote social inclusion and equity and improve better working conditions for all. The findings also have implications for career development and employability of HE graduates in developing world context.

Originality/value

Understanding the role that CTM programs can play in facilitating career development and graduate employability can arguably be of importance within the developing world context. This study, therefore, provides significant suggestions on how to build sustained HEIs and labour market partnership to foster career development and employability of HE graduates through establishing CTM centres in every Nigerian HE institutions.

Details

Education + Training, vol. 62 no. 3
Type: Research Article
ISSN: 0040-0912

Keywords

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