Garibaldi, Pietro; Gomes, Pedro; Sopraseuth, Thepthida - In: Quantitative economics : QE ; journal of the … 16 (2025) 2, pp. 535-564
We study two first‐order economic consequences of vertical mismatch, using a simple (neoclassical) model of under and overemployment. Individuals of high type can perform both skilled and unskilled jobs, but only a fraction of low‐type workers can perform skilled jobs. People have different...