@TechReport{iza:izadps:dp12974,
            	author={Garibaldi, Pietro and Gomes, Pedro Maia and Sopraseuth, Thepthida},
            	title={Output Costs of Education and Skill Mismatch},
            	year={2020},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={12974},
            	url={https://www.iza.org/publications/dp12974},
	abstract={We propose a simple theory of under- and over-employment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low-type workers can perform skilled jobs. People have different non-pecuniary values over these jobs, akin to a Roy model. We calibrate two versions of the model to match moments of 17 OECD economies, considering separately education and skills mismatch. The cost of mismatch is 3% of output on average but varies between -1% to 9% across countries. The key variable that explains the output cost of mismatch is not the percentage of mismatched workers but their wage relative to well-matched workers. },
	keywords={education mismatch;skill mismatch},
            }