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The increasing penalty to occupation‐education mismatch

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  • Hugh Cassidy
  • Amanda Gaulke

Abstract

College‐educated workers in jobs unrelated to their degree generally receive lower wages compared to well‐matched workers. Our analysis of data from the National Survey of College Graduates shows that although the rate of this mismatch declined only slightly (18%–17%), the wage penalty increased by 56% between 1993 and 2019. Changes in the composition of field of study over time, as well as declining returns to “excess” education above what is required for the occupation both help to explain the increasing penalty, especially for women. Mismatch has become more closely associated with lower‐return occupations for men but not women.

Suggested Citation

  • Hugh Cassidy & Amanda Gaulke, 2024. "The increasing penalty to occupation‐education mismatch," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 607-632, April.
    • Handle: RePEc:bla:ecinqu:v:62:y:2024:i:2:p:607-632
    DOI: 10.1111/ecin.13192
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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