In search of a better match : qualification mismatches in developing Asia

Kenn Chua and Natalie Chun

This paper empirically tests the role of search frictions in driving qualification mismatches in the labor market. Using new data from several low-income economies in urban Asia we find that overeducation in less developed labor markets are more pervasive than in more developed economies. Moreover, frictions related to search costs are a crucial determinant of match quality resulting in socially inefficient talent misallocation. Our findings suggest scope for policy interventions that improve worker-job matches with potential gains to wages and aggregate productivity.

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Year of publication:	[2016]
Authors:	Chua, Kenn ; Chun, Natalie
Publisher:	Metro Manila, Philippines : Asian Development Bank
Subject:	Asia \| labor markets \| matching \| qualification mismatches \| search \| Asien \| Matching \| Suchtheorie \| Search theory \| Qualifikation \| Occupational qualification \| Arbeitsmarkt \| Labour market \| Arbeitsuche \| Job search