Female Human Capital Mismatch: An extension for the British public sector. A new GLO Discussion Paper by GLO Fellow Yannis Galanakis.

A new GLO Discussion Paper finds that the public sector in the UK exhibits a high magnitude of mismatch and is an attractive waiting room for highly-qualified graduates.

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GLO Discussion Paper No. 669, 2020

Female Human Capital Mismatch: An extension for the British public sector – Download PDF
Galanakis, Yannis

GLO Fellow Yannis Galanakis

Author Abstract: This paper looks at the extent of labor market mismatch of public-sector female employees. It contributes to earlier findings for the British labor market by taking into account the endogenous self-selection into jobs. Estimates are based on data from the British Household Panel Study and the ’Understanding Society’ covering the years 1991-2016. The analysis verifies that the public sector offers a few low skilled jobs and employs, mostly, high-educated (female) workers. Regarding the market flows, findings show the greater mobility of the female workforce, which moves proportionately between sectors. Greater in-/out-flows to/from private sector are observed regardless the gender of the employee. Once comparing women to the median employee, a sizeable incidence of mismatch arises due to negative selection. Specifications using the selection model for the public sector illustrate a systematically higher magnitude of mismatch. Pooled results seem to dominate when women seen in the male labor market or in a restricted subsample. Finally, the map of occupations in mismatch supports that the public sector is more attractive as a waiting room for highly-qualified graduates. They queue less time until they find a good job. Hence, policy implications regarding the allocation of jobs for women may arise.

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