Human capital allocation and overeducation: A measure of French productivity (1987, 1999)

In the last four decades, France has experienced an increase in the numbers of students in further education. In this context, we have chosen to quantify the phenomenon of overeducation using a salary-based approach and to measure the impact of the general lengthening in the duration of studies on private sector productivity. The decomposition of the aggregate Luenberger productivity indicator into technological change and efficiency change reveals an increasing imbalance between salaries and required qualifications. Moreover, while overeducation has become less marked for intermediate and higher occupations, mismatches have increased in the case of the least skilled jobs.