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Assessing the Incidence and Wage Effects of Overskilling in the Australian Labour Market

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Author Info
KOSTAS MAVROMARAS
SEAMUS MCGUINNESS
YIN KING FOK

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Abstract

This paper examines the incidence and wage effects of overskilling in Australia. It finds that approximately 30 per cent of employees believed themselves to be moderately overskilled and 11 per cent believed themselves to be severely overskilled. The incidence of skills mismatch varied little when the sample was split by education. After controlling for individual and job characteristics as well as the potential bias arising from individual unobserved heterogeneity, severely overskilled workers suffer an average wage penalty of 10.2 per cent with the penalty ranging from about 6 per cent among vocationally qualified employees to just less than 20 per cent for graduates. Copyright © 2009 The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal Economic Record.

Volume (Year): 85 (2009)
Issue (Month): 268 (03)
Pages: 60-72
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Handle: RePEc:bla:ecorec:v:85:y:2009:i:268:p:60-72

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Australian Journal of Labour Economics (AJLE), The Centre for Labour Market Research (CLMR), Curtin Business School, vol. 8(2), pages 121-143, June.
  2. Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Department of Economics - Working Papers Series 940, The University of Melbourne. [Downloadable!]
  3. Francis Green & Steven McIntosh, 2007. "Is there a genuine under-utilization of skills amongst the over-qualified?," Applied Economics, Taylor and Francis Journals, vol. 39(4), pages 427-439. [Downloadable!] (restricted)
  4. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November. [Downloadable!]
  5. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June. [Downloadable!] (restricted)
  6. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Blackwell Publishing, vol. 20(3), pages 387-418, 07. [Downloadable!] (restricted)
  7. Derby Voon & Paul W. Miller, 2005. "Undereducation and Overeducation in the Australian Labour Market," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S22-S33, 08. [Downloadable!] (restricted)
  8. Parvinder Kler, 2005. "Graduate overeducation in Australia: A comparison of the mean and objective methods," Education Economics, Taylor and Francis Journals, vol. 13(1), pages 47-72, March. [Downloadable!] (restricted)
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  1. Kostas Mavromaras & Seamus McGuinness & Yin King Fok, 2009. "Overskilling Dynamics and Education Pathways," Melbourne Institute Working Paper Series wp2009n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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