• Overeducation Over the Lifecycle: Disentangling Frictions, Innate Ability, and Job‑Specific Experience

    Aleandro Palazzo

    [Draft coming soon]
    Abstract

    I develop a directed search model where workers differ by education, innate ability, and job-specific experience, and occupations differ in complexity and educational requirements. Calibrated to U.S. data (NLSY79), the model provides a structural decomposition of the mechanisms behind overeducation persistence. Frictions explain part of the early persistence, while specialization and its interaction with age drive long-run persistence. Overall, the analysis demonstrates that overeducation is not merely a temporary mismatch, but arises from structural mechanisms that trap workers in mismatched jobs, highlighting the importance of policies that adopt a lifecycle perspective.

  • Rethinking Investments in Human Capital in the Age of Artificial Intelligence

    Aleandro Palazzo

    Abstract

    Coming soon...