In Search of a Better Match: Qualification Mismatches in Developing Asia

Published By: Asian Development Bank Institute | Published Date: February, 01 , 2016

This paper empirically tests the role of search frictions in driving qualification mismatches in the labor market. Using new data from several low-income economies in urban Asia we find that overeducation in less developed labor markets are more pervasive than in more developed economies. Moreover, frictions related to search costs are a crucial determinant of match quality resulting in socially inefficient talent misallocation. Our findings suggest scope for policy interventions that improve worker-job matches with potential gains to wages and aggregate productivity.

Author(s): Kenn Chua, Natalie Chun | Posted on: Mar 10, 2016 | Views() | Download (126)

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