Educational mismatch, labor market completeness, and gender: Evidence from Chile.

This paper examines educational mismatch in Chile, a stable developing economy in Latin America, through the lens of incomplete markets. I offer three significant contributions to the field. Firstly, I develop a theoretical framework rooted in the job competition model and incomplete markets theory, placing educational mismatch in a historical context. This perspective broadens the discourse beyond conventional economic and sociological viewpoints, considering factors like the timing of higher education. Secondly, I explore the connection between educational mismatch's impact on wages and labor market discrimination, particularly gender-based disparities. This sheds light on how female workers are affected by educational mismatch. Lastly, I address methodological concerns by utilizing longitudinal data to refine our analysis, responding to critiques about using cross-sectional data to estimate educational mismatch. This study enhances the understanding of educational mismatch, offering insights specific to Chile's developing economy and contributing to a more comprehensive view of this issue in emerging economies. • Propose a novel framework, blending job competition and incomplete market theories, to analyze educational mismatch in Chile within its historical context. • Uncovers the links between educational mismatch and gender-based labor market discrimination, emphasizing the impact on female workers. • To bolster credibility, I tackle methodological concerns using longitudinal data, countering criticisms of cross-sectional data usage and ensuring research robustness. • My study extends beyond traditional viewpoints, advancing the understanding of educational mismatch in Chile's stable economy and providing policy insights for similar economies. [ABSTRACT FROM AUTHOR]