Drivers of skill mismatch among Italian graduates: The role of personality traits

Abstract

It is now well accepted that human capital is a heterogeneous aggregate and that noncognitive skills are at least as relevant as cognitive abilities. In spite of this growing interest in the labour market consequences of personality traits, the relationship between these and educational and skill mismatch is scant. In this paper, we investigate the impact of the five main personality traits (Big 5) on educational and skill mismatch in Italian graduates. To this aim, we use the 2018 wave of the Inapp-PLUS survey, which contains information on skill mismatch, on the Big 5 personality traits, and on a large number of other individual and job-specific characteristics. The empirical analysis takes into account both demand and supply variables mediating the effect of personality on skill mismatch and controls for non-random selection into employment and tertiary education. We find that some personality traits reduce the probability of overeducation, suggesting complementarity between cognitive and non-cognitive skills. In addition, we find a positive effect of conscientiousness on both overeducation and overqualification. The evidence regarding job satisfaction suggests that individuals with high scores for conscientiousness voluntarily decide to be mismatched when this entails higher satisfaction in other dimensions of the job.

Skill Mismatch : Measurement, Determinants, and Consequences

“…Among immigrants, underskilling is particularly prevalent for those with better host language skills and native speakers (Budría & Martínez-de-Ibarreta, 2021;Perry, 2017). The evidence also shows that individuals' personalities affect their chances for skill matching, so that individuals with a more open or conscientious personality are more likely to be overskilled, whereas higher neuroticism is associated with a lower likelihood of overskilling (Esposito & Scicchitano, 2022).…”