Mismatch between occupation and education and the costs and benefits of job-related training

In this chapter, a theoretical framework is developed for measuring the quality of match between jobs and types of education. The authors assert that it is possible to identify the type of education that is advantageous for particular occupations. The consequences of a mismatch are investigated in terms of costs and benefits of job-related training being required to close the gap between required and existing skills. The authors identify a clear link between educational level and the occupation level at which this educational level has an advantage. They estimate that there is an inverse link between educational level and internal rate of return for low and intermediate occupational levels on job-related training, the rate of return increasing with the educational level. Learning ability is then identified as being a more important factor, in that the more highly educated benefit from their learning ability, and are better able to close the gap between required and existing skills.

The monograph from which this chapter is taken is indexed at TD/TNC 66.301. Selected chapters are indexed from TD/TNC 66.302 to TD/TNC 66.306. Show less