We investigate how firms adjust to demand shocks when wages and employment determination are regulated. Using firm-level data for the Italian metal engineering industry from 2009 to 2021, we estimate the elasticity of the wage bill to changes in firm's real sales. We disentangle the effect on...

Short-time work (STW) has been widely used, both during the Great Recession and the COVID crisis, to preserve jobs. In most European countries, the implementation of STW schemes is often the result of bargaining between trade unions and employers, yet very little is known about the role of...

This article provides an overview of the economic literature on short-time work. It presents the main characteristics of short-time work since its emergence in Germany in the 1930s. It analyzes its effectiveness as a job preservation mechanism, drawing on theoretical models and empirical...

Skill mismatch is a key indicator of labour market research that has received significant attention. To date, various approaches of test-based measurement of skill mismatch have been used in research, generating differing results. However, it remains unclear which method is the most valid for...

This study analyzes the mechanisms by which short-time work (STW) schemes affect firm's employment adjustments, using establishment-level data during the Great Recession from Japan. The findings show that STW leads to a decrease in both hiring and separations, with no significant positive effect...

During the Covid-19 crisis, most OECD countries used short-time work (subsidized reductions in working hours) to preserve employment. This paper documents that short-time work affects the behavior of firms (supply) and households (demand). First, using household survey data from Germany, we show...

The sixth edition of the EURES report on labour market imbalances explores the current status of labour shortages and surpluses and how they have evolved over time. Since the first report, published in 2016, much of the methodology for identifying labour shortages and surpluses has remained...

This article provides an overview of the economic literature on short-time work. It presents the main characteristics of short-time work since its emergence in Germany in the 1930s. It analyzes its effectiveness as a job preservation mechanism, drawing on theoretical models and empirical...

The paper investigates the short-run job mobility of educationally mismatched workers, examining the validity of the Sicherman-Galor hypothesis, which predicts that overeducation is a temporary condition from a worker's perspective associated with higher upward occupational and wage mobility....

The aim of this study is to assess the effect of informal employment on the occurrence of overeducation in developing countries, focusing on the specific case of the DRC. Using employment data, we determine the incidence of overeducation and we isolate the role of informal employment as a...

This paper is the first to examine whether and how overeducation and overskilling, considered separately and in interaction, influence workers' job satisfaction at European level. It also investigates the moderating role of employment contracts. Our results, based on a unique pan-European...

A large body of literature shows that first-generation immigrants born in developing countries experience a higher likelihood of being overeducated than natives (i.e. immigrant overeducation). However, evidence is remarkably scarce when it comes to the overeducation of second-generation...

This paper is the first to examine whether and how overeducation and overskilling, considered separately and in interaction, influence workers' job satisfaction at European level. It also investigates the moderating role of employment contracts. Our results, based on a unique pan-European...

A large body of literature shows that first-generation immigrants born in developing countries experience a higher likelihood of being overeducated than natives (i.e. immigrant overeducation). However, evidence is remarkably scarce when it comes to the overeducation of second-generation...

Having highly educated workers can be beneficial for organizations in terms of innovation and problem-solving capabilities, however when underpaid and underemployed, overeducated workers may experience feelings of frustration and stagnation as they are unable to fully utilize their skills and...

Governments use short-time work (STW) schemes to subsidize job preservation during crises. We study the take-up of STW and its effects on worker outcomes and firm behavior using German administrative data from 2009 to 2021. Establishments utilizing STW tend to have higher wages, be larger, and...

The paper introduces a new measure of educational mismatch at the firm level, constructed by merging firm and individual data at the sector-firm size-year level. This measure captures both the intensity of mismatch and its type - whether overeducation, undereducation, or a mix of the two. We...

The phenomenon of overqualification is becoming increasingly common across many countries. In this research study, the main objective is to examine factors that determine overqualification, the impact of overqualification on wages, and the earning differences between genders in the case of...

This article provides an overview of the economic literature on short-time work. It presents the main characteristics of short-time work since its emergence in Germany in the 1930s. It analyzes its effectiveness as a job preservation mechanism, drawing on theoretical models and empirical...

This paper investigates the causal effect of global value chain (GVC)-related trade on the German labor market during the COVID-19 crisis, using a difference-in-differences approach combined with entropy balancing. The analysis of monthly establishment-level data from January 2019 to December...

Exploiting rich nationally representative longitudinal data from the China Family Panel Studies this paper explores the relationship between overeducation, earnings and job satisfaction among graduates in China. We find consistent evidence, across multiple measures of overeducation, of wage and...

The phenomenon of overqualification is becoming increasingly common across many countries. In this research study, the main objective is to examine factors that determine overqualification, the impact of overqualification on wages, and the earning differences between genders in the case of...

The UK has one of the highest proportions of tertiary educated workers in Europe but also one of the highest rates of graduate underemployment. Little is known however about the extent to which there is a scarring effect of early graduate underemployment on future labour market outcomes. In this...

During international negotiations for the Rio Earth Summit of 1992, coalitions made up of countries from the Global South took shape, only to break up gradually over time. The climate positions of two leading emerging powers, the People's Republic of China and India, have increasingly drifted...

Governments use short-time work (STW) schemes to subsidize job preservation during crises. We study the take-up of STW and its effects on worker outcomes and firm behavior using German administrative data from 2009 to 2021. Establishments utilizing STW tend to have higher wages, be larger, and...

When individuals risk being overeducated for their jobs, returns to education might be lower and heterogeneous. To investigate this, we develop a novel framework that decomposes returns using an expected value conditional on overeducation risks and penalties. We estimate these components using...

We assess the hypothesis that declining intergenerational economic mobility in Norway is attributable to a rising signaling value of education accompanied by more overeducation particularly among upperclass offspring. We identify five empirical facts that together point in this direction: •...

I study the ramifications of the German short-time work (STW) scheme using novel administrative data on STW and drawing on evidence from establishment surveys that are linked to the administrative data. I show that, besides financial reasons, firms value and use STW because it allows them to...

A significant reallocation of labour towards "green" jobs will be crucial for the transition to a decarbonised economy. Skills mismatches challenge the feasibility of this reallocation, particularly with many developed countries also facing substantial labour shortages. This paper analyses the...

The sixth edition of the EURES report on labour market imbalances explores the current status of labour shortages and surpluses and how they have evolved over time. Since the first report, published in 2016, much of the methodology for identifying labour shortages and surpluses has remained...