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Firm Human Resource Practices and Educational Mismatch

Author

Listed:
  • Berloffa, Gabriella

    (University of Trento)

  • Piazzalunga, Daniela

    (University of Trento)

  • Pieri, Fabio

    (University of Trento)

Abstract

The paper introduces a new measure of educational mismatch at the firm level, constructed by merging firm and individual data at the sector-firm size-year level. This measure captures both the intensity of mismatch and its type – whether overeducation, undereducation, or a mix of the two. We assess the role of human resource practices in reducing the intensity of educational mismatch in Italian firms by estimating econometric models that control for a rich set of firm characteristics, as well as year and industry-region fixed effects. Firm-fixed effects and instrumental variable models complement the analysis. Findings indicate that the use of private recruitment agencies, on-the-job training, and structured supervision is associated with a reduction in mismatch intensity. The impact of other practices varies by mismatch type: higher job turnover rates correlate with lower undereducation but increased overeducation, while second-level bargaining increases undereducation and reduces overeducation.

Suggested Citation

  • Berloffa, Gabriella & Piazzalunga, Daniela & Pieri, Fabio, 2024. "Firm Human Resource Practices and Educational Mismatch," IZA Discussion Papers 17424, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17424
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    More about this item

    Keywords

    educational mismatch; human resource practices; firm-level analysis; overeducation; undereducation;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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