Philipp Grunau - Academia.edu (original) (raw)

Papers by Philipp Grunau

Research paper thumbnail of Bericht zum Forschungsmonitor „Variable Vergütungssysteme“ : Mai 2018

Research paper thumbnail of Heterogeneity in firms’ recruitment practices: New evidence from representative employer data

German Journal of Human Resource Management: Zeitschrift für Personalforschung

The hiring and recruitment process is one of the main challenges to the success of companies and ... more The hiring and recruitment process is one of the main challenges to the success of companies and a significant driver of total labor costs. We use representative employer data for German private-sector establishments with at least 50 employees to explore recent developments in employer search, selection, and screening activities over the years of 2012–2018. We document changes in hiring policies over time and address heterogeneity across establishments related to size, ownership, and industry sector. Our results show that although establishment characteristics are correlated with different facets of hiring behavior, there is no homogeneous pattern for employer search and selection instruments. We highlight differences of hiring practices targeted at managerial versus non-managerial new hires. Finally, we outline potential mechanisms and research gaps for future work and discuss managerial implications. JEL Codes: J21, J63, M51

Research paper thumbnail of Works council ‘disaffection’ and establishment survivability

Scottish Journal of Political Economy

Research paper thumbnail of Stichprobe der Integrierten Grundsicherungsbiografien (SIG) – Version 0717 v1

Die Stichprobe der Integrierten Grundsicherungsbiografien (SIG) stellt eine 5%-Stichprobe aus der... more Die Stichprobe der Integrierten Grundsicherungsbiografien (SIG) stellt eine 5%-Stichprobe aus der Grundgesamtheit der Leistungshistorik Grundsicherung (LHG) des Instituts für Arbeitsmarkt- und Berufsforschung (IAB) dar, ergänzt um umfangreiche Informationen zu allen Mitgliedern der jeweiligen Bedarfsgemeinschaften der gezogenen Stichprobenpersonen aus den Integrierten Erwerbsbiografien (IEB). Die IEB beinhalten tagesgenaue Informationen zu sozialversicherungspflichtiger Beschäftigung, geringfügiger Beschäftigung, zum Bezug von Leistungen nach dem Rechtskreis SGB III oder SGB II, zu Zeiten der Arbeitsuche bei der Bundesagentur für Arbeit (BA) sowie zu (geplanten) Teilnahmen an arbeitsmarktpolitischer Maßnahme. Diese umfassenden biografischen Informationen zu den aus der LHG gezogenen Stichprobenpersonen und deren Bedarfsgemeinschaftsmitgliedern können auf Antrag zusätzlich um detaillierte Finanzinformationen aus der Leistungsstatistik SGB II – Stichprobenziehung des IAB (LST-S) anger...

Research paper thumbnail of Sample of Integrated Welfare Benefit Biographies (SIG) 2007 - 2017

This data report describes the Sample of Integrated Welfare Benefit Biographies (SIG) 2007 - 2017... more This data report describes the Sample of Integrated Welfare Benefit Biographies (SIG) 2007 - 2017. The Sample of Integrated Welfare Benefit Biographies (SIG) is a 5 percent random sample drawn from the Unemployment Benefit II Recipient History (LHG) of the Institute for Employment Research (IAB). Comprehensive records on both the sampled individuals and their household members from the Integrated Employment Biographies (IEB) further enrich this data. The IEB consist of daily information on employment subject to social security, marginal part-time employment, benefit receipt according to the German Social Code III or II, official registration as job seeking at the German Federal Employment Agency, and (planned) participation in programs of active labour market policies. Upon reasonable request, this already rich data product can further be extended by means of detailed financial information on welfare receipt from the UB II Income and Benefit Statistics – Sample of the IAB (LST-S). A...

Research paper thumbnail of Personalentwicklung und Weiterbildung: Bericht zum Monitor

Research paper thumbnail of Personalmanagement und wirtschaftlicher Erfolg: Sonderbericht

Research paper thumbnail of Recruitment Strategies and Match Quality – New Evidence from Representative Linked Employer-Employee Data

In economics, the recruitment process of firms is largely treated as a black box. To shed light o... more In economics, the recruitment process of firms is largely treated as a black box. To shed light on this process, we use new representative linked employer-employee data for German private-sector establishments to explore search, selection and screening activities over the years 2012-2018. We document longitudinal changes in hiring policies and address the heterogeneity across establishments relating to size, ownership, sector, and unobserved heterogeneity. Firms' recruitment strategies have sizeable effects on the composition of worker productivity, worker-firm match quality, the number of open vacancies, as well as expected staffing problems. Finally, we outline potential mechanisms and research gaps for future work, where there is room for more detailed and causal evidence.

Research paper thumbnail of Mobile Arbeitsformen aus Sicht von Betrieben und Beschäftigten: Homeoffice bietet Vorteile, hat aber auch Tücken

Flexible Arbeitsmodelle sind im Zuge der Digitalisierung stärker in den Fokus von Personalmanager... more Flexible Arbeitsmodelle sind im Zuge der Digitalisierung stärker in den Fokus von Personalmanagern gerückt. Auch die Politik widmet sich dem Thema zunehmend, wie der jüngste Vorstoß der SPD zur Einführung eines gesetzlichen Rechts auf Homeoffice zeigt. Allerdings sind die Beschäftigten, die nicht an ihrem angestammten Arbeitsplatz arbeiten, nach wie vor in der Minderheit. Daher stellt sich die Frage, warum Home office in Deutschland nicht häufiger angeboten und genutzt wird.

Research paper thumbnail of Arbeitsqualität und wirtschaftlicher Erfolg: Längsschnittstudie in deutschen Betrieben ; Endbericht

Forschungskooperation des Bundesministeriums fur Arbeit und Soziales (BMAS) - Endbericht im Proje... more Forschungskooperation des Bundesministeriums fur Arbeit und Soziales (BMAS) - Endbericht im Projekt - Stand: 30. November 2017.

Research paper thumbnail of Career mobility of temporary workers within and across establishments: A demand-side perspective

This paper addresses the career mobility of temporary workers from a demand-side perspective, foc... more This paper addresses the career mobility of temporary workers from a demand-side perspective, focussing on promotions to managerial positions and wage growth. We use a large-scale revised administrative data source on employees entailing the entire population of promotions, which are considered a rare event. We provide evidence that compared to employees with a permanent contract, temporary workers are more likely to be promoted to a managerial position. Looking closer, this advantage is more pronounced across than within establishments, which we interpret as evidence for the greater importance of the flexibility over the screening function of temporary employment. However, because the qualification-related impact of fixed-term contracts on promotion is U-shaped, i.e. lowest for the medium-skilled IVET workers with long training periods in the establishments, we conclude that the screening function is still relevant in the German labour market. Moreover, the wage growth premium we f...

Research paper thumbnail of Dissonant Works Councils and Establishment Survivability

SSRN Electronic Journal, 2019

Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research pu... more Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

Research paper thumbnail of New administrative data on welfare dynamics in Germany: the Sample of Integrated Welfare Benefit Biographies (SIG)

Journal for Labour Market Research, 2020

The Sample of Integrated Welfare Benefit Biographies (SIG) is a new administrative longitudinal m... more The Sample of Integrated Welfare Benefit Biographies (SIG) is a new administrative longitudinal microdata set representative of recipients of Germany’s main welfare programme, the Unemployment Benefit II (UB II, Arbeitslosengeld II). The data set contains detailed longitudinal information on welfare receipt and labour market activities, and hence enables researchers to analyse the dynamics of benefit receipt, income and employment. A distinct feature of the SIG is that it provides information not only for individual benefit recipients but also for family members, including children and partners. This is possible because eligibility for UB II benefits depends on the household structure, and it is means-tested on household income. In addition to socio-demographic and regional information, the SIG contains extensive information on the employment biographies of benefit recipients and their household members from the Integrated Employment Biographies (IEB) of the Institute for Employment...

Research paper thumbnail of Literacy and numeracy of overeducated and undereducated workers: revisiting the allocation process in the labour market

Education Economics, 2020

According to a prominent hypothesis, the occurrence of educational mismatches is consistent with ... more According to a prominent hypothesis, the occurrence of educational mismatches is consistent with human capital theory since over-and undereducation are substitutes for heterogeneity in the abilities and skills among educational peers. Using German data 1 of literacy and numeracy test scores, I find evidence that compared to their correctly matched educational peers, overeducated (undereducated) workers have lower (better) numeracy and literacy. Controlling for former periods of educational mismatch or unemployment confirms these results. However, only a small proportion of the wage penalty (wage premium) associated with overeducation (undereducation) can be attributed to the wider consideration of human capital endowment.

Research paper thumbnail of Retraining for the unemployed and the quality of the job match

Applied Economics, 2020

In Germany, retraining is an important measure in active labour market policy, providing unemploy... more In Germany, retraining is an important measure in active labour market policy, providing unemployed individuals with extensive vocational training. Using administrative data, we show that retraining participants are more likely to take up jobs that require their educational degree and are more often employed in those occupations for which they have received vocational training. Moreover, retraining leads to higher earnings. As these effects may be driven by the positive impact of retraining on employment, we additionally try to isolate the direct effect by restricting our analyses to those formerly unemployed who find employment irrespective of participation in retraining.

Research paper thumbnail of Asymmetric information in external versus internal promotions

Empirical Economics, 2019

Research paper thumbnail of Worker representation and temporary employment in Germany

Journal of Participation and Employee Ownership, 2019

PurposeThe purpose of this paper is to investigate the impact of key labor institutions on the oc... more PurposeThe purpose of this paper is to investigate the impact of key labor institutions on the occurrence and extent of temporary employment.Design/methodology/approachIn a new departure, this study uses a zero-inflated negative binomial (ZINB) model given that most establishments are non-users of either fixed-term contracts (FTCs) or temporary agency workers.FindingsThis study examines the potential impact of works councils and unions on the use and intensity of use of FTCs and temporary agency work. There is a little indication that these variables are correlated with the use/non-use of either type of temporary work, especially in the case of FTCs. Collective bargaining displays different relationships with their intensity of use: a negative association for sectoral bargaining and FTCs and the converse for firm-level bargaining and agency temps. Of more interest, however, is the covariation between the number of temporary employees and the interaction between works councils and pr...

Research paper thumbnail of Chasing the carrot – actual working hours of fixed-term employees

Applied Economics Letters, 2018

Fixed-term contracts can serve as a screening device to reveal the true ability of workers. To ac... more Fixed-term contracts can serve as a screening device to reveal the true ability of workers. To achieve promotion to a permanent position, fixed-term employees have an incentive to prove themselves by providing higher effort than competing co-workers by means of longer working hours. Applying fixed effects estimation to the German register data, we find that employees work longer hours on fixed-term contracts. This effect is stronger for labour market entrants and employees that are newly hired. We further show that actual hours of work are particularly large when there is competition among co-workers to receive promotion to a permanent position.

Research paper thumbnail of The impact of overeducated and undereducated workers on establishment-level productivity

International Journal of Manpower, 2016

Purpose– Many contributions to the educational mismatch literature address the productivity effec... more Purpose– Many contributions to the educational mismatch literature address the productivity effects of both excess and deficit educational attainments for workers at the individual level. Due to the limited transferability of their results to establishment-level performance, especially when allowing for the possibility of spillover effects from mismatched workers to their well-matched colleagues, from an employer’s point of view, it is highly important to know the net effect of educationally mismatched employees on productivity at the establishment level. The paper aims to discuss these issues.Design/methodology/approach– This paper analyses the impact of overeducated and undereducated workers among an establishment’s workforce on its productivity, providing first representative evidence for Germany. Using linked employer-employee data from Germany, the author estimates dynamic panel production functions using a system GMM estimator.Findings– The author finds that undereducated work...

Research paper thumbnail of Educational mismatch and promotions to managerial positions: a test of the career mobility theory

Applied Economics, 2016

Career mobility theory suggests that given a certain occupation, schooling improves upward mobili... more Career mobility theory suggests that given a certain occupation, schooling improves upward mobility in terms of promotion and wage growth. We are the first to test the implications of this theory for over-and undereducation by means of direct information about promotions to managerial positions. Using German administrative data entailing an employer-reportedand hence objectivemeasure of educational requirements, we show that overeducated workers are indeed more likely to be promoted and that this career mobility advantage is more pronounced in the early stages of their working lives. By contrast, undereducated workers are less likely to be promoted to managerial positions. Moreover, in terms of wage growth, while overeducated workers benefit more, undereducated workers benefit less from promotions than their wellmatched educational peers. Altogether, these findings strongly support the career mobility theory. Furthermore, by differentiating between internal and external promotions, we provide evidence that promotions are more likely for overeducated workers within the establishment, whereas the opposite applies for undereducated workers. This finding indicates the relevance of both over-and undereducation as signals of true ability to other employers.

Research paper thumbnail of Bericht zum Forschungsmonitor „Variable Vergütungssysteme“ : Mai 2018

Research paper thumbnail of Heterogeneity in firms’ recruitment practices: New evidence from representative employer data

German Journal of Human Resource Management: Zeitschrift für Personalforschung

The hiring and recruitment process is one of the main challenges to the success of companies and ... more The hiring and recruitment process is one of the main challenges to the success of companies and a significant driver of total labor costs. We use representative employer data for German private-sector establishments with at least 50 employees to explore recent developments in employer search, selection, and screening activities over the years of 2012–2018. We document changes in hiring policies over time and address heterogeneity across establishments related to size, ownership, and industry sector. Our results show that although establishment characteristics are correlated with different facets of hiring behavior, there is no homogeneous pattern for employer search and selection instruments. We highlight differences of hiring practices targeted at managerial versus non-managerial new hires. Finally, we outline potential mechanisms and research gaps for future work and discuss managerial implications. JEL Codes: J21, J63, M51

Research paper thumbnail of Works council ‘disaffection’ and establishment survivability

Scottish Journal of Political Economy

Research paper thumbnail of Stichprobe der Integrierten Grundsicherungsbiografien (SIG) – Version 0717 v1

Die Stichprobe der Integrierten Grundsicherungsbiografien (SIG) stellt eine 5%-Stichprobe aus der... more Die Stichprobe der Integrierten Grundsicherungsbiografien (SIG) stellt eine 5%-Stichprobe aus der Grundgesamtheit der Leistungshistorik Grundsicherung (LHG) des Instituts für Arbeitsmarkt- und Berufsforschung (IAB) dar, ergänzt um umfangreiche Informationen zu allen Mitgliedern der jeweiligen Bedarfsgemeinschaften der gezogenen Stichprobenpersonen aus den Integrierten Erwerbsbiografien (IEB). Die IEB beinhalten tagesgenaue Informationen zu sozialversicherungspflichtiger Beschäftigung, geringfügiger Beschäftigung, zum Bezug von Leistungen nach dem Rechtskreis SGB III oder SGB II, zu Zeiten der Arbeitsuche bei der Bundesagentur für Arbeit (BA) sowie zu (geplanten) Teilnahmen an arbeitsmarktpolitischer Maßnahme. Diese umfassenden biografischen Informationen zu den aus der LHG gezogenen Stichprobenpersonen und deren Bedarfsgemeinschaftsmitgliedern können auf Antrag zusätzlich um detaillierte Finanzinformationen aus der Leistungsstatistik SGB II – Stichprobenziehung des IAB (LST-S) anger...

Research paper thumbnail of Sample of Integrated Welfare Benefit Biographies (SIG) 2007 - 2017

This data report describes the Sample of Integrated Welfare Benefit Biographies (SIG) 2007 - 2017... more This data report describes the Sample of Integrated Welfare Benefit Biographies (SIG) 2007 - 2017. The Sample of Integrated Welfare Benefit Biographies (SIG) is a 5 percent random sample drawn from the Unemployment Benefit II Recipient History (LHG) of the Institute for Employment Research (IAB). Comprehensive records on both the sampled individuals and their household members from the Integrated Employment Biographies (IEB) further enrich this data. The IEB consist of daily information on employment subject to social security, marginal part-time employment, benefit receipt according to the German Social Code III or II, official registration as job seeking at the German Federal Employment Agency, and (planned) participation in programs of active labour market policies. Upon reasonable request, this already rich data product can further be extended by means of detailed financial information on welfare receipt from the UB II Income and Benefit Statistics – Sample of the IAB (LST-S). A...

Research paper thumbnail of Personalentwicklung und Weiterbildung: Bericht zum Monitor

Research paper thumbnail of Personalmanagement und wirtschaftlicher Erfolg: Sonderbericht

Research paper thumbnail of Recruitment Strategies and Match Quality – New Evidence from Representative Linked Employer-Employee Data

In economics, the recruitment process of firms is largely treated as a black box. To shed light o... more In economics, the recruitment process of firms is largely treated as a black box. To shed light on this process, we use new representative linked employer-employee data for German private-sector establishments to explore search, selection and screening activities over the years 2012-2018. We document longitudinal changes in hiring policies and address the heterogeneity across establishments relating to size, ownership, sector, and unobserved heterogeneity. Firms' recruitment strategies have sizeable effects on the composition of worker productivity, worker-firm match quality, the number of open vacancies, as well as expected staffing problems. Finally, we outline potential mechanisms and research gaps for future work, where there is room for more detailed and causal evidence.

Research paper thumbnail of Mobile Arbeitsformen aus Sicht von Betrieben und Beschäftigten: Homeoffice bietet Vorteile, hat aber auch Tücken

Flexible Arbeitsmodelle sind im Zuge der Digitalisierung stärker in den Fokus von Personalmanager... more Flexible Arbeitsmodelle sind im Zuge der Digitalisierung stärker in den Fokus von Personalmanagern gerückt. Auch die Politik widmet sich dem Thema zunehmend, wie der jüngste Vorstoß der SPD zur Einführung eines gesetzlichen Rechts auf Homeoffice zeigt. Allerdings sind die Beschäftigten, die nicht an ihrem angestammten Arbeitsplatz arbeiten, nach wie vor in der Minderheit. Daher stellt sich die Frage, warum Home office in Deutschland nicht häufiger angeboten und genutzt wird.

Research paper thumbnail of Arbeitsqualität und wirtschaftlicher Erfolg: Längsschnittstudie in deutschen Betrieben ; Endbericht

Forschungskooperation des Bundesministeriums fur Arbeit und Soziales (BMAS) - Endbericht im Proje... more Forschungskooperation des Bundesministeriums fur Arbeit und Soziales (BMAS) - Endbericht im Projekt - Stand: 30. November 2017.

Research paper thumbnail of Career mobility of temporary workers within and across establishments: A demand-side perspective

This paper addresses the career mobility of temporary workers from a demand-side perspective, foc... more This paper addresses the career mobility of temporary workers from a demand-side perspective, focussing on promotions to managerial positions and wage growth. We use a large-scale revised administrative data source on employees entailing the entire population of promotions, which are considered a rare event. We provide evidence that compared to employees with a permanent contract, temporary workers are more likely to be promoted to a managerial position. Looking closer, this advantage is more pronounced across than within establishments, which we interpret as evidence for the greater importance of the flexibility over the screening function of temporary employment. However, because the qualification-related impact of fixed-term contracts on promotion is U-shaped, i.e. lowest for the medium-skilled IVET workers with long training periods in the establishments, we conclude that the screening function is still relevant in the German labour market. Moreover, the wage growth premium we f...

Research paper thumbnail of Dissonant Works Councils and Establishment Survivability

SSRN Electronic Journal, 2019

Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research pu... more Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

Research paper thumbnail of New administrative data on welfare dynamics in Germany: the Sample of Integrated Welfare Benefit Biographies (SIG)

Journal for Labour Market Research, 2020

The Sample of Integrated Welfare Benefit Biographies (SIG) is a new administrative longitudinal m... more The Sample of Integrated Welfare Benefit Biographies (SIG) is a new administrative longitudinal microdata set representative of recipients of Germany’s main welfare programme, the Unemployment Benefit II (UB II, Arbeitslosengeld II). The data set contains detailed longitudinal information on welfare receipt and labour market activities, and hence enables researchers to analyse the dynamics of benefit receipt, income and employment. A distinct feature of the SIG is that it provides information not only for individual benefit recipients but also for family members, including children and partners. This is possible because eligibility for UB II benefits depends on the household structure, and it is means-tested on household income. In addition to socio-demographic and regional information, the SIG contains extensive information on the employment biographies of benefit recipients and their household members from the Integrated Employment Biographies (IEB) of the Institute for Employment...

Research paper thumbnail of Literacy and numeracy of overeducated and undereducated workers: revisiting the allocation process in the labour market

Education Economics, 2020

According to a prominent hypothesis, the occurrence of educational mismatches is consistent with ... more According to a prominent hypothesis, the occurrence of educational mismatches is consistent with human capital theory since over-and undereducation are substitutes for heterogeneity in the abilities and skills among educational peers. Using German data 1 of literacy and numeracy test scores, I find evidence that compared to their correctly matched educational peers, overeducated (undereducated) workers have lower (better) numeracy and literacy. Controlling for former periods of educational mismatch or unemployment confirms these results. However, only a small proportion of the wage penalty (wage premium) associated with overeducation (undereducation) can be attributed to the wider consideration of human capital endowment.

Research paper thumbnail of Retraining for the unemployed and the quality of the job match

Applied Economics, 2020

In Germany, retraining is an important measure in active labour market policy, providing unemploy... more In Germany, retraining is an important measure in active labour market policy, providing unemployed individuals with extensive vocational training. Using administrative data, we show that retraining participants are more likely to take up jobs that require their educational degree and are more often employed in those occupations for which they have received vocational training. Moreover, retraining leads to higher earnings. As these effects may be driven by the positive impact of retraining on employment, we additionally try to isolate the direct effect by restricting our analyses to those formerly unemployed who find employment irrespective of participation in retraining.

Research paper thumbnail of Asymmetric information in external versus internal promotions

Empirical Economics, 2019

Research paper thumbnail of Worker representation and temporary employment in Germany

Journal of Participation and Employee Ownership, 2019

PurposeThe purpose of this paper is to investigate the impact of key labor institutions on the oc... more PurposeThe purpose of this paper is to investigate the impact of key labor institutions on the occurrence and extent of temporary employment.Design/methodology/approachIn a new departure, this study uses a zero-inflated negative binomial (ZINB) model given that most establishments are non-users of either fixed-term contracts (FTCs) or temporary agency workers.FindingsThis study examines the potential impact of works councils and unions on the use and intensity of use of FTCs and temporary agency work. There is a little indication that these variables are correlated with the use/non-use of either type of temporary work, especially in the case of FTCs. Collective bargaining displays different relationships with their intensity of use: a negative association for sectoral bargaining and FTCs and the converse for firm-level bargaining and agency temps. Of more interest, however, is the covariation between the number of temporary employees and the interaction between works councils and pr...

Research paper thumbnail of Chasing the carrot – actual working hours of fixed-term employees

Applied Economics Letters, 2018

Fixed-term contracts can serve as a screening device to reveal the true ability of workers. To ac... more Fixed-term contracts can serve as a screening device to reveal the true ability of workers. To achieve promotion to a permanent position, fixed-term employees have an incentive to prove themselves by providing higher effort than competing co-workers by means of longer working hours. Applying fixed effects estimation to the German register data, we find that employees work longer hours on fixed-term contracts. This effect is stronger for labour market entrants and employees that are newly hired. We further show that actual hours of work are particularly large when there is competition among co-workers to receive promotion to a permanent position.

Research paper thumbnail of The impact of overeducated and undereducated workers on establishment-level productivity

International Journal of Manpower, 2016

Purpose– Many contributions to the educational mismatch literature address the productivity effec... more Purpose– Many contributions to the educational mismatch literature address the productivity effects of both excess and deficit educational attainments for workers at the individual level. Due to the limited transferability of their results to establishment-level performance, especially when allowing for the possibility of spillover effects from mismatched workers to their well-matched colleagues, from an employer’s point of view, it is highly important to know the net effect of educationally mismatched employees on productivity at the establishment level. The paper aims to discuss these issues.Design/methodology/approach– This paper analyses the impact of overeducated and undereducated workers among an establishment’s workforce on its productivity, providing first representative evidence for Germany. Using linked employer-employee data from Germany, the author estimates dynamic panel production functions using a system GMM estimator.Findings– The author finds that undereducated work...

Research paper thumbnail of Educational mismatch and promotions to managerial positions: a test of the career mobility theory

Applied Economics, 2016

Career mobility theory suggests that given a certain occupation, schooling improves upward mobili... more Career mobility theory suggests that given a certain occupation, schooling improves upward mobility in terms of promotion and wage growth. We are the first to test the implications of this theory for over-and undereducation by means of direct information about promotions to managerial positions. Using German administrative data entailing an employer-reportedand hence objectivemeasure of educational requirements, we show that overeducated workers are indeed more likely to be promoted and that this career mobility advantage is more pronounced in the early stages of their working lives. By contrast, undereducated workers are less likely to be promoted to managerial positions. Moreover, in terms of wage growth, while overeducated workers benefit more, undereducated workers benefit less from promotions than their wellmatched educational peers. Altogether, these findings strongly support the career mobility theory. Furthermore, by differentiating between internal and external promotions, we provide evidence that promotions are more likely for overeducated workers within the establishment, whereas the opposite applies for undereducated workers. This finding indicates the relevance of both over-and undereducation as signals of true ability to other employers.