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Education-job mismatch in Ukraine: Too many people with tertiary education or too many jobs for low-skilled?

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  • Kupets, Olga
Abstract
This paper examines changes in the incidence of education-job mismatch in Ukraine over 10 years and the determinants of overeducation and undereducation at the regional level, with a particular attention paid to the differences between younger and older workers. It also analyzes shifts in the occupational and sectoral structure of employment driven by technological changes and restructuring of the Ukrainian economy. A job polarization in Ukraine seems to stem from deindustrialization, expansion of subsistence farming, rapid growth of retail trade and other less-knowledge intensive services, rather than from routine-based technological changes observed in developed countries. Our results, obtained from the Hausman–Taylor panel data model, suggest that fairly high and persistent education-job mismatch results from both the supply (too many people with tertiary university education) and demand (too many jobs for low-skilled workers) factors. Taking into account that older workers are often more prone to overeducation in Ukraine than their younger peers, the major concern is that overeducation is likely to be a dead-end for many workers.

Suggested Citation

  • Kupets, Olga, 2016. "Education-job mismatch in Ukraine: Too many people with tertiary education or too many jobs for low-skilled?," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 125-147.
    • Handle: RePEc:eee:jcecon:v:44:y:2016:i:1:p:125-147
    DOI: 10.1016/j.jce.2015.10.005
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    2. Saloni Khurana & Kanika Mahajan, 2020. "Evolution of wage inequality in India (1983-2017): The role of occupational task content," WIDER Working Paper Series wp-2020-167, World Institute for Development Economic Research (UNU-WIDER).
    3. Tymofii Brik & Maksym Obrizan, 2024. "Gender Gap in Urban Job Market During the Pandemic: The Case of Ukraine," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 66(2), pages 215-235, June.
    4. Sudipa Sarkar, 2017. "Employment polarization and over-education in Germany, Spain, Sweden and UK," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 435-463, August.
    5. Chung‐Khain WYE & Rahmah ISMAIL, 2019. "The effects of ability on returns to over‐ and under‐education: Evidence from Malaysia," International Labour Review, International Labour Organization, vol. 158(3), pages 535-559, September.
    6. Tymofii Brik & Maksym Obrizan, 2020. "Job market effects of COVID-19 on urban Ukrainian households," Papers 2007.15704, arXiv.org.
    7. Olha Hrynkevych & Olha Levytska & Ihor Baranyak, 2023. "Human resources for regional development in Ukraine: A roadmap for forecasting and determining a regional training request," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(1), pages 95-107, February.
    8. Gustavo Pereira Serra, 2021. "The First Harrod Problem and Human Capital Formation," Working Papers 2113, New School for Social Research, Department of Economics.
    9. Manuel Salas-Velasco, 2021. "Mapping the (mis)match of university degrees in the graduate labor market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-23, December.
    10. Demirgüç-Kunt, Asli & Torre, Iván, 2022. "Measuring human capital in middle income countries," Journal of Comparative Economics, Elsevier, vol. 50(4), pages 1036-1067.
    11. Pastore, Francesco & Quintano, Claudio & Rocca, Antonella, 2021. "Some young people have all the luck! The duration dependence of the school-to-work transition in Europe," Labour Economics, Elsevier, vol. 70(C).
    12. Daria Suprunenko, 2024. "Ukrainian export and production after the 2014 Russia shock," IEER Working Papers 124, Institute of Empirical Economic Research, Osnabrueck University.
    13. Luisa Salaris & Nicola Tedesco, 2020. "Migration and the Labour Market: Ukrainian Women in the Italian Care Sector," Journal of International Migration and Integration, Springer, vol. 21(1), pages 1-20, March.
    14. Hazama, Yasushi, 2022. "Who supports free trade in developing countries and why: comparative advantage vs the skill premium," IDE Discussion Papers 855, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    15. Brock, Gregory, 2019. "A remote sensing look at the economy of a Russian region (Rostov) adjacent to the Ukrainian crisis," Journal of Policy Modeling, Elsevier, vol. 41(2), pages 416-431.
    16. Balzhan Serikbayeva & Kanat Abdulla, 2022. "Education-Job Mismatch: Implications for Individual Earnings and Aggregate Output," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 723-752, September.
    17. S.D. Kapelyuk & E.N. Lishchuk, 2020. "The Scale of Overeducation in the Rural Labor Market," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(3), pages 370-397.
    18. Uros Delevic & James Kennell, 2022. "Multinationals And Wages: Evidence From Employer–Employee Data In Serbia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 67(232), pages 49-80, January –.

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    More about this item

    Keywords

    Overeducation; Job polarization; Structural shifts; Specialization in regional employment;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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