We analyze horizontal mismatch in Switzerland defined as a mismatch between the type of skills 
acquired by students and the skills required for their job. We investigate the argument in the literature that the more specific an education system is, the higher are the wage penalties due to horizontal mismatch. Switzerland is an ideal case to test this hypothesis because it relies heavily on vocational education and training. The data stems from the longitudinal Swiss Household Panel in the years 1999 to 2012 and contains subjective and objective measures of mismatch. Controlling for time-invariant heterogeneity in fixed effects regressions, the wage penalty for self-reported horizontal mismatch is 3.2% for women, yet not significant for men. Not working in a learned occupation does not lead to significant wage effects, nei- ther for women nor men. The wage effects und are similar for work- ers with general and vocational education background. Overall, wage penalties for horizontal mismatch are small and do not support the hypothesis of higher penalties for mismatch due to vocational educa- tion. We conclude that vocational education is more transferable than often assumed, and that continuous training and on-the-job learning allow workers to update their skills continuously.
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Job Market Monitor 
Skills are vital for poverty reduction, economic recovery and sustainable development. As a consequence, policy attention to Vocational Education and Training VET is increasing worldwide. VET comprises formal, non-formal and informal learning for the world of work. Young people, women and men learn knowledge and skills from basic to advanced levels across a wide range of institutional and work settings and in diverse socio-economic contexts.
Posted by Avli Avli | November 16, 2015, 11:31 pm