WHEN HIGHER EDUCATIONAL ATTAINMENT HARMS GROWTH: THE ROLE OF VERTICAL QUALIFICATION MISMATCH

Abstract

This paper presents a summary of results of a study which investigates the reasons behind the negative link between higher educational attainment of the labor force and the rate of real growth observed in some economies. It tries to explain that pattern in light of the labor market channel and the existence of vertical qualification mismatch specifically. The hypothesis raised has been verified by evaluating the impact of tertiary education on growth in two economies – Bulgaria and Estonia.