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Matching Skill and Tasks: Cyclical Fluctuations in the Overqualification of New Hires

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  • Fraser Summerfield

    (University of Aberdeen, UK; The Rimini Centre for Economic Analysis, Italy)

Abstract

This paper demonstrates that downturns can affect job match quality by influencing job tasks. Cognitive and manual task shares and education-based overqualification measures are generated from Canada’s Labour Force Survey and the O*NET database. Manual tasks are shown to be countercyclical among newly formed jobs. Task measures also displace the predictive power of labor market conditions for the probability of overqualification. The paper develops and calibrates a search model with two-sided heterogeneity that can account for these empirical findings. Predictions differ from prior models because production processes and vacancy posting costs differ. A single percentage point increase in unemployment is accompanied by an increase in the share of manual task vacancies by 6 percentage points, leading to an increase in overqualification by 3.5 percentage points. A policy experiment shows that increased unemployment benefits may not reduce overqualification.

Suggested Citation

  • Fraser Summerfield, 2016. "Matching Skill and Tasks: Cyclical Fluctuations in the Overqualification of New Hires," Working Paper series 16-08, Rimini Centre for Economic Analysis.
    • Handle: RePEc:rim:rimwps:16-08
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    Cited by:

    1. Addison, John T. & Chen, Liwen & Ozturk, Orgul Demet, 2017. "Occupational Match Quality and Gender over Two Cohorts," IZA Discussion Papers 11114, Institute of Labor Economics (IZA).
    2. Brunello, Giorgio & Wruuck, Patricia, 2019. "Skill Shortages and Skill Mismatch in Europe: A Review of the Literature," IZA Discussion Papers 12346, Institute of Labor Economics (IZA).
    3. Brunello, Giorgio & Wruuck, Patricia & Maurin, Laurent, 2019. "Skill shortages and skill mismatch in Europe: A review of the literature," EIB Working Papers 2019/05, European Investment Bank (EIB).
    4. Giorgio Brunello & Patricia Wruuck, 2021. "Skill shortages and skill mismatch: A review of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1145-1167, September.

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