Journal of Education and Human Development

“Human Capital Theory, Matching Theory And The Greek Labour Market”
Dr Stavros Rodokanakis

Abstract
In particular, the human capital theory is tested, as well as the matching theory. This article examines the impact that vocational training programmes and level of education had on the labour market, and especially on the chances of finding a job, of semi-peripheral EU countries, using Greece as a case study during the period 1988-2000, and links the research to the present economic situation in Greece. Apart from an extended interaction effects analysis, the study moves beyond the econometric analysis of micro-level data, and embeds the empirical findings within the institutional/organizational environment of Greek vocational training (meso-level) to provide a comprehensive explanation of what empirically is identified as the minimal impact of these policies. One of the contributions of this paper is that, given the experience in Greece, it is evident that abstract micro-level theories of skills mismatch, like the human capital theory, cannot be applied in political economies where labour markets cannot absorb high skills and where demand for jobs requiring these is weak. The results of this research support matching theory better than human capital theory.

Full Text: PDF     DOI: 10.15640/jehd.v10n1a6