The impact of labour market mismatch on earnings: The case of Eritrea

Kifle, Temesgen (2006). The impact of labour market mismatch on earnings: The case of Eritrea. In: Garry MacDonald, Proceedings of the 35th Australian Conference of Economists. The 35th Australian Conference of Economists, Perth, Western Australia, Australia, (1-23). 25-27 September 2006.


Author Kifle, Temesgen
Title of paper The impact of labour market mismatch on earnings: The case of Eritrea
Conference name The 35th Australian Conference of Economists
Conference location Perth, Western Australia, Australia
Conference dates 25-27 September 2006
Proceedings title Proceedings of the 35th Australian Conference of Economists
Place of Publication Australia
Publisher Economic Society of Australia (WA)
Publication Year 2006
Sub-type Fully published paper
ISBN 1 74067 501 0
Editor Garry MacDonald
Start page 1
End page 23
Total pages 23
Language eng
Formatted Abstract/Summary
The aim of this paper is to estimate the incidence of labour market mismatch, identify the determinants of mismatch and evaluate the earnings consequences of mismatch in Eritrea. The paper also confronts the estimated results with different theoretical paradigms. The findings suggest that the argument that overeducation is a temporary whereas undereducation is a permanent scenario applies only in the private sector. In the public sector, the positive relationship between overeducation and years of work experience is a consequence of the existence of restriction on labour mobility. The estimated returns to over- and undereducation show that overeducated workers earn more than co-workers but less than workers with the same levels of schooling holding jobs that demand the level of schooling they have obtained. Similarly, undereducated workers get lower earnings than their co-workers but more than workers with the same level of schooling working in jobs that require their level of schooling. It is found that the assignment model best describes the existence of labour market mismatch in Eritrea, implying that labour market rigidities should be removed to allow individuals to fully utilize their skills. 
Subjects 1402 Applied Economics
Keyword Earnings
Eritrea
Labour market mismatch
Overeducation
Undereducation
Q-Index Code EX
Additional Notes Session 13 - Labour Economics I

 
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Created: Wed, 14 Apr 2010, 14:01:42 EST by Ms May Balasaize on behalf of ISSR - Research Groups