Education, Mismatch and Unemployment

Name: Education, Mismatch and Unemployment
Brand: Vita e Pensiero
Price: 6.00 EUR
Availability: OnlineOnly

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Issue

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2019 - 3

Title

Education, Mismatch and Unemployment

Authors

Gianluca Femminis, Giulio Piccirilli

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

11-2019

Doi

10.26350/000518_000034

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

We study an economy where the labour market is plagued with search imperfections and is segmented along a set of professions. To enter a profession, workers need to undertake a specific educational investment. At the time of the investment, however, workers are imperfectly informed on the outlook offered by any profession as they only observe a private and a public signal concerning this outlook. We show that imperfect information induces misallocation of labour across professions and increases the rate of unemployment. We also show that, contrary to the policy advice of some labour market observers, an increase in the precision of the public signal does not necessarily lead to a reduction in the rate of unemployment.

keywords

Returns to Education, Occupational Choice, Information Processing

Authors biography

Gianluca Femminis, Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore, Milano. Email: gianluca.femminis@unicatt.it
Giulio Piccirilli (Corresponding Author), Universitas Mercatorum, Roma. Email: g.piccirilli@unimercatorum.it