Mismatch in human capital accumulation
International economic review, 2019, Vol. 60, No. 3, pp. 1291-1328
COOPER, Russell, LIU, Huacong, Mismatch in human capital accumulation, International economic review, 2019, Vol. 60, No. 3, pp. 1291-1328 - http://hdl.handle.net/1814/66024
Retrieved from Cadmus, EUI Research Repository
This article studies the allocation of heterogeneous agents to levels of educational attainment. The goal is to understand the magnitudes and sources of mismatch in this assignment, both in theory and in the data. The article presents evidence of substantial mismatch between ability and educational attainment across 21 OECD countries, with a main focus on Germany, Italy, Japan, and the United States. Model parameters are estimated using a simulated method of moments approach. The main empirical finding is that measured mismatch arises largely from noise in test scores and does not reflect borrowing constraints. Taste shocks play a minor role in explaining mismatch.
First published: 29 January 2019
Cadmus permanent link: http://hdl.handle.net/1814/66024
Full-text via DOI: 10.1111/iere.12386
ISSN: 0020-6598; 1468-2354
Sponsorship and Funder information:
ZEW in Mannheim Germany
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