Appendix: Matching Index – illustration and com- com-ments

Dans le document Essays on location choice: agglomeration, amenities and housing (Page 94-100)

Table 2.A.1: IT research and development engineers and managers

Rank Degree field Obs. Shareedu,occ Matchingedu,occ

1 Informatics and Information Sciences 565 42% 1.00

2 Electrical and Electronic 129 10% 0.23

engineering-related technologies

3 Robotics, and Automation 127 10% 0.22

4 Pluriscientific specialties 82 6% 0.15

5 Industrial technologies 51 4% 0.09

...

50 Literature and Arts 1 0.1% 0.002

...

82 Geography 0 0% 0

83 Health 0 0% 0

This table provides an illustration of the computation of matching indexes for the occupation IT research and development engineers and managers (“IT engineers” here-after). Workers are ranked according to their degree field. The table shows that among the sample, 565 IT engineers have a degree in Informatics and Information Sciences, 126 in Electrical and Electronic engineering while only one IT engineer in the dataset has a degree in Literature and Arts.

I first compute the proportion of IT engineers holding each degree. I find for instance that 10% of workers have a degree in Electrical and Electronic engineering. In order to rescale the measure to the [0-1] range, these proportions are divided by Sharemaxocc , the maximum value of Shareedu,occ that is observed for this occupation. This computation provides us with a matching index for each degree field. This index equals one for the educational fieldInformatics and Information Sciences, meaning that it is the most preva-lent degree field among IT engineers. If many employers hire IT engineers with a degree in informatics and information sciences, it suggests that this major is pretty well suited for this occupation. The lowest matching index is about 0.002 (0.1%42%) for Literature and Arts, meaning that this educational background is not the most appropriate major for this occupation. Employers seem to be reluctant to hire workers with a degree in Literature and Arts for this occupation. A coefficient of zero is then manually assigned to degrees for which we have no observation in the dataset for this occupation. Examples in the data includeGeographyorHealth. The matching index between these fields and the occupation IT engineers is zero as any IT engineers hold a degree in Geography or in Health. They are then considered as mismatched.

Comment on the occupational perspective This index reflects the distribution of degrees within occupations. There are several motives for this choice. First, the aim of this measure is to identify the most appropriate degrees to work in each occupation. It does not seek to determine a worker’s preferred occupation depending on her educational background. Besides, the number of observations is higher within degrees than within jobs. The occupational classification is therefore a too fine grid for precisely estimating the quality of a match. Matching indexes associated with many occupations would indeed be very low if they were computed at the level of degree fields rather than occupations. I have computed a symmetric index from the education perspective. The average matching index in the sample is eventually lower when using this symmetric measure but the two are significantly correlated. As expected, coefficients using the symmetric index are less precisely estimated. This justifies the fact that matching indexes are computed on the basis of occupations rather than degrees.

References

Abel, Jaison R. and Richard Deitz (2012). “Agglomeration and job matching among college graduates”.

Ades, Alberto F. and Edward L. Glaeser (1999). “Evidence on Growth, Increasing Returns, and the Extent of the Market”. English. In:The Quarterly Journal of Economics114.3, pp. 1025–1045. issn: 00335533.

Albouy, David (2008). “Are Big Cities Bad Places to Live? Estimating Quality of Life across Metropolitan Areas”. NBER Working Papers, n.14472.

Allen, Jim and Rolf van der Velden (2001). “Educational mismatches versus skill mis-matches: effects on wages, job satisfaction, and on-the-job search”. In: Oxford Eco-nomic Papers 53.3, pp. 434–452.

Anderson, James E. and Eric van Wincoop (2003). “Gravity with Gravitas: A Solution to the Border Puzzle”. In:American Economic Review 93.1, pp. 170–192.

Andersson, Martin, Johan Klaesson, and Johan P Larsson (2013). “The sources of the urban wage premium by worker skills: Spatial sorting or agglomeration economies?”

In:Papers in Regional Science. issn: 1435-5957.

Andini, Monica, Guido de Blasio, Gilles Duranton, and William C. Strange (2013). “Mar-shallian labour market pooling: Evidence from Italy”. In:Regional Science and Urban Economics 43.6, pp. 1008–1022. issn: 0166-0462.

Arcidiacono, Peter, V. Joseph Hotz, and Songman Kang (2012). “Modeling college major choices using elicited measures of expectations and counterfactuals”. In: Journal of Econometrics166.1. Annals Issue on “Identification and Decisions”, in Honor of Chuck Manski’s 60th Birthday, pp. 3–16. issn: 0304-4076.

Babeau, A (1894). La province sous l’ancien r´egime. Firmin-Didot et cie: Paris.

Baier, Scott L. and Jeffrey H. Bergstrand (2009). “Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation”. In:Journal of International Economics 77.1, pp. 77–85. issn: 0022-1996.

Baum-Snow, Nathaniel and Ronni Pavan (2012). “Understanding the City Size Wage Gap”. In: Review of Economic Studies 79.1, pp. 88–127.

Behrens, Kristian, Gilles Duranton, and Fr´ed´eric Robert-Nicoud (2014). “Productive Cities: Sorting, Selection, and Agglomeration”. In:Journal of Political Economy122.3, pp. 507–553.

Bleakley, Hoyt and Jeffrey Lin (2012). “Thick-market effects and churning in the labor market: Evidence from US cities”. In:Journal of Urban Economics 72.2, pp. 87–103.

Bosquet, Cl´ement and Henry G. Overman (2015). “Home versus home-town: What do we mean by spatial sorting?” In:

Briant, A., P.-P. Combes, and M. Lafourcade (2010). “Dots to boxes: Do the size and shape of spatial units jeopardize economic geography estimations?” In: Journal of Urban Economics 67.3, pp. 287–302.

Chardon, Olivier (2005). “La sp´ecialit´ee formation joue un role secondaire pour acc´eder

`

a la plupart des m´etiers”. In: Eonomie et Statistique 388.1, pp. 37–56.

Chevalier, Arnaud (2000). Graduate over-education in the UK. Centre for the Economics of Education, London School of Economics and Political Science.

— (2003). “Measuring Over-Education”. English. In: Economica. New Series 70.279, pp. 509–531.issn: 00130427.

Ciccone, Antonio and Robert E Hall (1996). “Productivity and the Density of Economic Activity”. In:American Economic Review 86.1, pp. 54–70.

Cohn, Elchanan and Shahina P. Khan (1995). “The wage effects of overschooling revis-ited”. In: Labour Economics 2.1, pp. 67–76. issn: 0927-5371.

Combes, Pierre-Philippe, Gilles Duranton, and Laurent Gobillon (2008). “Spatial wage disparities: Sorting matters!” In: Journal of Urban Economics 63.2, pp. 723–742.

Combes, Pierre-Philippe, Gilles Duranton, Laurent Gobillon, and S´ebastien Roux (2010).

“Estimating agglomeration economies with history, geology, and worker effects”. In:

Agglomeration Economics. Ed. by Edward L. Glaeser. University of Chicago Press, pp. 15–66.

Combes, Pierre-Philippe, Gilles Duranton, Laurent Gobillon, and S´ebastien Roux (2012).

“Sorting and Local Wage and Skill Distributions in France”. In: Regional Science and Urban Economics 42.6, pp. 913–930.

Costa, Dora L. and Matthew E. Kahn (2000). “Power Couples: Changes In The Locational Choice Of The College Educated, 1940-1990”. In:The Quarterly Journal of Economics 115.4, pp. 1287–1315.

Davis, Donald R. and David E. Weinstein (2003). “Market access, economic geography and comparative advantage: an empirical test”. In:Journal of International Economics 59.1, pp. 1–23. issn: 0022-1996.

D’Costa, Sabine and Henry G. Overman (2013). “The Urban Wage Growth Premium:

Sorting or Learning?”

De La Roca, Jorge and Diego Puga (2012). “Learning by working in big cities”.

Desjardins, R. and K. Rubenson (2011). “An Analysis of Skill Mismatch Using Direct Measures of Skills”.

Di Addario, Sabrina and Eleonora Patacchini (2008). “Wages and the City. Evidence from Italy”. In: Labour Economics 15.5, pp. 1040–1061. issn: 0927-5371.

Duncan, Greg J. and Saul D. Hoffman (1981). “The incidence and wage effects of overe-ducation”. In: Economics of Education Review 1.1, pp. 75–86. issn: 0272-7757.

Duranton, Gilles and Diego Puga (2001). “Nursery Cities: Urban Diversity, Process Inno-vation, and the Life Cycle of Products”. English. In:The American Economic Review 91.5, pp. 1454–1477. issn: 00028282.

— (2004). “Micro-Foundations of Urban Agglomeration Economies”. In: Handbook of Regional and Urban Economics. Ed. by J. V. Henderson and J. F. Thisse. Vol. 4.

Elsevier. Chap. 48.

Eaton, Jonathan and Zvi Eckstein (1997). “Cities and growth: Theory and evidence from France and Japan”. In: Regional Science and Urban Economics 27.4, pp. 443–474.

Ellison, Glenn, Edward L. Glaeser, and William R. Kerr (2010). “What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns”. In: American Economic Review 100.3, pp. 1195–1213.

European Commission (2008). “The Bordeaux communiqu´e on enhanced European coop-eration in vocational education and training. Communiqu´e of the European Ministers for vocational education and training, the European social partners and the European Commission, meeting in Bordeaux on 26 November 2008 to review the priorities and strategies of the Copenhagen process”.

Finney, Miles (2006). “An Empirical Test of Urban Labor Matching”. In: ersa06p372.

ERSA conference papers.

Forth, John and Geoff Mason (2006). Do ICT Skill Shortages Hamper Firms’ Perfor-mance? Evidence from UK Benchmarking Surveys.

Frenette, Marc (2004). “The overqualified Canadian graduate: the role of the academic program in the incidence, persistence, and economic returns to overqualification”. In:

Economics of Education Review 23.1, pp. 29–45. issn: 0272-7757.

Gan, Li and Qi Li (2004). “Efficiency of thin and thick markets”.

Glaeser, Edward L., Jed Kolko, and Albert Saiz (2001). “Consumer City”. In: Journal of Economic Geography 1.1, pp. 27–50.

Glaeser, Edward L. and David C. Mar´e (2001). “Cities and Skills”. In: Journal of Labor Economics 19.2, pp. 316–342.

Groot, Wim and Henriette Maassen van den Brink (2000). “Overeducation in the labor market: a meta-analysis”. In:Economics of Education Review 19.2, pp. 149–158.issn: 0272-7757.

Grossman, Gene M. (2013). “Heterogeneous workers and international trade”. English.

In:Review of World Economics 149.2, pp. 211–245. issn: 1610-2878.

Hanson, G.H. (1999). “Market Potential, Increasing Returns, and Geographic Concentra-tion”. In: 439.

Hartog, Joop (2000). “Over-education and earnings: where are we, where should we go?”

In:Economics of Education Review 19.2, pp. 131–147.issn: 0272-7757.

Helliwell, John F (1998). How much do national borders matter? Brookings Institution Press.

Helpman, Elhanan, Oleg Itskhoki, Marc-Andreas Muendler, and Stephen J. Redding (2012). “Trade and Inequality: From Theory to Estimation”.

Helsley, Robert W. and William C. Strange (1990). “Matching and agglomeration economies in a system of cities”. In: Regional Science and Urban Economics 20.2, pp. 189–212.

Hilmer, Michael J. and Christiana E. Hilmer (2012). “On the relationship between stu-dent tastes and motivations, higher education decisions, and annual earnings”. In:

Economics of Education Review 31.1, pp. 66–75. issn: 0272-7757.

Ioannides, Yannis M. and Linda Datcher Loury (2004). “Job Information Networks, Neigh-borhood Effects, and Inequality”. In: Journal of Economic Literature 42.4, pp. 1056–

1093.

Jofre-Monseny, Jordi, Raquel Marin-Lopez, and Elisabet Viladecans-Marsal (2011). “The mechanisms of agglomeration: Evidence from the effect of inter-industry relations on the location of new firms”. In: Journal of Urban Economics 70.2-3, pp. 61–74. issn: 0094-1190.

Kiker, B.F., Maria C. Santos, and M.Mendes de Oliveira (1997). “Overeducation and undereducation: Evidence for Portugal”. In: Economics of Education Review 16.2, pp. 111–125.issn: 0272-7757.

Krugman, Paul (1991). “Increasing Returns and Economic Geography”. In: Journal of Political Economy 99.3, pp. 483–99.

Marshall, A. (1890). Principle of Economics. Macmillan, London.

Matano, Alessia and Paolo Naticchioni (2012). “Wage distribution and the spatial sorting of workers”. In: Journal of Economic Geography 12.2, pp. 379–408.

Mavromaras, Kostas, Seamus McGuinness, Nigel O’Leary, Peter Sloane, and Zhang Wei (2013). “Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates”. In: Economic Record 89.286, pp. 382–395. issn: 1475-4932.

Melo, Patricia C., Daniel J. Graham, and Robert B. Noland (2009). “A Meta-Analysis of Estimates of Urban Agglomeration Economies”. In: Regional Science and Urban Economics 39.3, pp. 332–342.

Mion, Giordano and Paolo Naticchioni (2009). “The spatial sorting and matching of skills and firms”. In:Canadian Journal of Economics/Revue canadienne d’Economique 42.1, pp. 28–55. issn: 1540-5982.

Moulton, Brent R. (1990). “An Illustration of a Pitfall in Estimating the Effects of Aggre-gate Variables on Micro Units”. English. In: The Review of Economics and Statistics 72.2, pp. 334–338.issn: 00346535.

Nordin, Martin, Inga Persson, and Dan-Olof Rooth (2010). “Education-occupation mis-match: Is there an income penalty?” In:Economics of Education Review29.6, pp. 1047–

1059.issn: 0272-7757.

Overman, Henry G. and Diego Puga (2010). “Labor Pooling as a Source of Agglomeration:

An Empirical Investigation”. In:Agglomeration Economics. NBER Chapters. National Bureau of Economic Research, Inc, pp. 133–150.

Papke, Leslie E. and Jeffrey M. Wooldridge (1996). “Econometric methods for fractional response variables with an application to 401(k) plan participation rates”. In:Journal of Applied Econometrics 11.6, pp. 619–632.issn: 1099-1255.

— (2008). “Panel data methods for fractional response variables with an application to test pass rates”. In:Journal of Econometrics 145.1, pp. 121–133.

Rappaport, Jordan (2007). “Moving to Nice Weather”. In: Regional Science and Urban Economics 37.3, pp. 375–398.

— (2008). “Consumption Amenities and City Population Density”. In: Regional Science and Urban Economics 38.6, pp. 533–552.

Redding, Stephen J. and Daniel M. Sturm (2008). “The Costs of Remoteness: Evi-dence from German Division and Reunification”. In:American Economic Review 98.5, pp. 1766–97.

Roback, Jennifer (1982). “Wages, Rents, and the Quality of Life”. In: Journal of Political Economy 90.6, pp. 1257–1278.

Robst, John (2007). “Education and job match: The relatedness of college major and work”. In: Economics of Education Review 26.4, pp. 397–407.

Rosenthal, Stuart S. and William C. Strange (2004). “Evidence on the Nature and Sources of Agglomeration Economies”. In:Handbook of Regional and Urban Economics. Ed. by J. V. Henderson and J. F. Thisse. Vol. 4. Handbook of Regional and Urban Economics.

Elsevier. Chap. 49, pp. 2119–2171.

Scott, Allen J. (1988). Metropolis: from the division of labor to urban form. University of California Pr.

Sloane, Peter J (2003). “Much ado about nothing? What does the overeducation literature really tell us”. In:Overeducation in Europe. Current issues in theory and policy, pp. 11–

45.

Snedecor, GW and WG Cochran (1989). Statistical methods.

Sokal, R. R. and F. J. Rohlf (1981).Biometry: the Principles and Practice of statistics in biological research. 2nd. W. H. Freeman: San Francisco.

Stock, James and Motohiro Yogo (2005). “Testing for Weak Instruments in Linear IV Regression”. In: Identification and Inference for Econometric Models. Ed. by Donald W.K. Andrews. New York: Cambridge University Press, pp. 80–108.

Strange, William C., Walid Hejazi, and Jianmin Tang (2006). “The uncertain city: Com-petitive instability, skills, innovation and the strategy of agglomeration”. In: Journal of Urban Economics 59.3, pp. 331–351. issn: 0094-1190.

Verdugo, Richard R. and Naomi Turner Verdugo (1989). “The Impact of Surplus Schooling on Earnings: Some Additional Findings”. English. In:The Journal of Human Resources 24.4, pp. 629–643.issn: 0022166X.

Verhaest, Dieter and Eddy Omey (2006). “The Impact of Overeducation and its Measure-ment”. English. In: Social Indicators Research 77.3, pp. 419–448.issn: 0303-8300.

Vincens, Jean (2001). “Exp´erience professionnelle et formation”. fre. In:Agora d´ebats/jeunesses 25.1, pp. 55–67.issn: 1268-5666.

Wheeler, Christopher H. (2006). “Cities and the growth of wages among young workers:

Evidence from the NLSY”. In: Journal of Urban Economics 60.2, pp. 162–184. issn: 0094-1190.

Wooldridge, Jeffrey M. (2010).Econometric analysis of cross section and panel data. MIT press.

Yankow, Jeffrey J. (2006). “Why do cities pay more? An empirical examination of some competing theories of the urban wage premium”. In:Journal of Urban Economics60.2, pp. 139–161.

Dans le document Essays on location choice: agglomeration, amenities and housing (Page 94-100)