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IZA Discussion Paper No. 17424
October 2024
Firm Human Resource Practices and Educational Mismatch
Gabriella Berloffa, Daniela Piazzalunga, Fabio Pieri

The paper introduces a new measure of educational mismatch at the firm level, constructed by merging firm and individual data at the sector-firm size-year level. This measure captures both the intensity of mismatch and its type – whether overeducation, undereducation, or a mix of the two. We assess the role of human resource practices in reducing the intensity of educational mismatch in Italian firms by estimating econometric models that control for a rich set of firm characteristics, as well as year and industry-region fixed effects. Firm-fixed effects and instrumental variable models complement the analysis. Findings indicate that the use of private recruitment agencies, on-the-job training, and structured supervision is associated with a reduction in mismatch intensity. The impact of other practices varies by mismatch type: higher job turnover rates correlate with lower undereducation but increased overeducation, while second-level bargaining increases undereducation and reduces overeducation.

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Mark Fallak
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Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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