Job Mismatches and their Labour-Market Effects among School-Leavers in Europe

Abstract

In this article, we investigate the determinants of job mismatches with regard to the field of education among school‐leavers in Europe. We also examine the effects of job mismatches on the labour‐market position of school‐leavers. Special attention is paid to cross‐national differences in this respect. The data used are from the EU LFS 2000 ad hoc module on school‐to‐work transitions. The empirical results show that a number of individual, structural and job characteristics affect the likelihood of having a job mismatch. Moreover, in countries in which the education system is vocationally oriented, the incidence of job mismatches among school‐leavers is higher than in countries in which the education system is mainly general. With respect to the labour‐market effects of job mismatches, it is found that school‐leavers with a non‐matching job achieve a lower occupational status, more frequently look for another job, and more often participate in continuing vocational training than those with a matching one. These labour‐market effects of job mismatches are smaller in countries in which the vocational orientation of the education system is stronger.