The Effect of Import Exposure on Education-Occupation Mismatch : A Supply-Demand Analysis

This research investigates the impact of import exposure on education-occupation mismatch. I use an input-output table to construct a measure of import exposure that accounts for both direct and indirect trade shocks. Findings show that increased import exposure leads to a rise in education-occupation mismatch from 2011 through 2019. Moreover, for the supply side I present that a rise in import exposure significantly increases the number of bachelor's degrees awarded in 4-year colleges and in most degree fields. However, for the demand side I do not observe corresponding increases in occupational employment for most fields of education. The unbalanced demand for and supply of college graduates might potentially explain the rise in education-occupation mismatch