Vertical Educational (Mis)match and Inclusive Growth: Theoretical Conceptualizations and Evidence from a European Perspective

Abstract

The concept of inclusive growth highlights that enhancing human development requires ensuring not only sustainable economic growth but also that its benefits are widely shared. In turn, the problem of skills/educational mismatch looms large because of its (negative) consequences for individual and societal well-being. Against this background, this article studies some effects of skills/educational mismatch on inclusive economic growth. More concretely, it focuses on the relationships between vertical educational (mis)match and some macro characteristics, such as the level of unemployment and poverty indices. Theoretically, in searching for a more comprehensive understanding of skills/educational mismatch, the article draws on the heuristic potential of the capability approach. Empirically, this study relies on data from the 11th round of the European Social Survey, carried out in 2023/2024, and official statistical sources and has applied correlations for the analyses. This study’s findings show that the vertical educational match can be viewed as a sign of inclusive growth. They further reveal that the effects of skills/educational (mis)match at the societal level vary among different occupational groups. Finally, the obtained results demonstrate that vertical—either above or below—educational mismatch is related to capability deprivation at a societal level.