Shiyang Liu, Weibiao Ma and Nanxin Deng
The purpose of this study is to investigate the effect of noncognitive skills on educational mismatch in the context of China and to further explore the potential mechanisms…
Abstract
Purpose
The purpose of this study is to investigate the effect of noncognitive skills on educational mismatch in the context of China and to further explore the potential mechanisms concerning how noncognitive skills determine mismatch outcomes.
Design/methodology/approach
This paper uses the Chinese Family Panel Survey of 2018, which provides the Big Five Personality Inventory to assess respondents' noncognitive skills and contains information on educational mismatch. The authors estimate the effects of noncognitive skills on educational mismatch by means of a probit model. Additionally, the correlated random effects (CRE) model and instrumental variable (IV) approach have also been exploited in the robust checks.
Findings
The findings show that the composite score of noncognitive skills reduces the probability of being overeducated and, conversely, increases the likelihood of being undereducated. When distinguishing the effects of different personality traits, the authors find significantly negative effects of agreeableness and openness on overeducation and a positive effect of openness on undereducation. With regard to heterogeneous analysis, the effects of noncognitive skills on educational mismatch exist mostly among white-collar employees and employees with fewer than 5 years of work experience. Finally, the authors provide two likely mechanisms related to job search effort and social capital, followed by the presentation of supporting evidence.
Practical implications
The results of this paper underline the importance of noncognitive skills in raising the quality of jobs that individuals can obtain. This suggests that the development of noncognitive skills should be encouraged to be integrated into formal education systems and social job training programs in China.
Originality/value
Despite a growing interest in its consequences in the labor market, the role of noncognitive skills in determining educational mismatch has rarely been discussed in developing countries. This study provides the first evidence regarding the effects of noncognitive skills on education mismatch in China. It contributes to the research on noncognitive skills' labor market outcomes and enhances the understanding of the factors driving educational mismatch.
Details
Keywords
This paper examines disemployment effects of minimum wages during the period 2002–2010.
Abstract
Purpose
This paper examines disemployment effects of minimum wages during the period 2002–2010.
Design/methodology/approach
The authors employ the discontinuity design.
Findings
The authors find that minimum wages had a significant negative impact on teen employment before the Great Recession. During the Great Recession, the disemployment effects of minimum wages were insignificant. The finding is consistent with the evolution of firms’ market power during the business cycle.
Originality/value
The authors attempt to reconcile the debate about the effects of minimum wages on US employment.