An Age–Period–Cohort Approach to the Incidence and Evolution of Overeducation and Skills Mismatch

Abstract

This paper provides new evidence on the changes in the level and persistence of occupational mismatch across countries by investigating whether differences among generations (cohorts) are at the core of these changes. Using data from the 1994–1998 International Adult Literacy Survey, the 2003–2008 Adult Literacy and Life Skills Survey, and the 2011–2012 OECD Survey of Adult Skills, we estimate an age–period–cohort model in three European countries to examine the extent to which younger cohorts face a greater (smaller) risk of being occupationally mismatched in their jobs than their older counterparts. Two definitions of occupational mismatch are used, focusing on both educational attainment and literacy skills. Results indicate that countries present different patterns in the evolution of occupational mismatch from older to younger generations according to the definition employed (overeducation or skills mismatch). Different macro-economic and educational contexts may be at the core of these results, suggesting that tailored policy responses are desirable for effectively addressing the occupational mismatch problem.