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Job congruence, academic achievement, and earnings

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Author Info

  • Neumann, George
  • Olitsky, Neal
  • Robbins, Steve

Abstract

This study combines a widely held view of how earnings are related to education and job tenure (The Mincer model1) with the notion that earnings are associated with the quality of an employer-employee job match. The quality of an individual's occupational choice is measured using job congruence, a commonly-used construct in the psychometric literature. Better-matched individuals should be more productive and, as a result, have higher earnings. Previous studies were unable to address the importance of job preferences to earnings because available data do not include both job congruence and individual earnings. The Alumni Outcomes Survey, recently produced by ACT Inc., is among the first data sets to include both variables. We use these data to estimate the importance of job congruence on earnings after controlling both for job tenure and for academic achievement, measured by an individual's ACT score. Results indicate that job congruence is positively correlated with earnings, and has effects on earnings that are of almost equal magnitude with years of education.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 16 (2009)
Issue (Month): 5 (October)
Pages: 503-509

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Handle: RePEc:eee:labeco:v:16:y:2009:i:5:p:503-509

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Educational choice Occupational choice Mismatch Labor market outcomes Academic achievement;

References

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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.:
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  1. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, May.
  2. McKinley Blackburn & David Neumark, 1991. "Unobserved Ability, Efficiency Wages, and Interindustry Wage Differentials," NBER Working Papers 3857, National Bureau of Economic Research, Inc.
  3. James Albrecht & Susan Vroman, 2000. "A Matching Model with Endogenous Skill Requirements," Econometric Society World Congress 2000 Contributed Papers 0774, Econometric Society.
  4. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January.
  5. Heckman, James J. & Lochner, Lance & Todd, Petra E., 2005. "Earnings Functions, Rates of Return and Treatment Effects: The Mincer Equation and Beyond," IZA Discussion Papers 1700, Institute for the Study of Labor (IZA).
  6. Heckman, James J. & Lochner, Lance & Todd, Petra E., 2003. "Fifty Years of Mincer Earnings Regressions," IZA Discussion Papers 775, Institute for the Study of Labor (IZA).
  7. Horowitz, Joel L & Spokoiny, Vladimir G, 2001. "An Adaptive, Rate-Optimal Test of a Parametric Mean-Regression Model against a Nonparametric Alternative," Econometrica, Econometric Society, vol. 69(3), pages 599-631, May.
  8. Martin Browning & Lars Peter Hansen & James J. Heckman, 1999. "Micro Data and General Equilibrium Models," Discussion Papers 99-10, University of Copenhagen. Department of Economics.
  9. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-52, July.
  10. José Ignacio García Pérez & Yolanda Rebollo Sanz, 2004. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Economic Working Papers at Centro de Estudios Andaluces E2004/70, Centro de Estudios Andaluces.
  11. Polachek, Solomon W. & Robst, John, 1998. "Employee labor market information: comparing direct world of work measures of workers' knowledge to stochastic frontier estimates," Labour Economics, Elsevier, vol. 5(2), pages 231-242, June.
  12. Stewart, Mark B, 1982. "On Least Squares Estimation when the Dependent Variable is Grouped," The Warwick Economics Research Paper Series (TWERPS) 207, University of Warwick, Department of Economics.
  13. Hansen, W Lee & Weisbrod, Burton A & Scanlon, William J, 1970. "Schooling and Earnings of Low Achievers," American Economic Review, American Economic Association, vol. 60(3), pages 409-18, June.
  14. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  15. Tsang, Mun C. & Levin, Henry M., 1985. "The economics of overeducation," Economics of Education Review, Elsevier, vol. 4(2), pages 93-104, April.
  16. Mora, Juan & Moro-Egido, Ana I., 2008. "On specification testing of ordered discrete choice models," Journal of Econometrics, Elsevier, vol. 143(1), pages 191-205, March.
  17. Jeff Grogger & Eric Eide, 1995. "Changes in College Skills and the Rise in the College Wage Premium," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 280-310.
  18. Viscusi, W Kip, 1979. "Job Hazards and Worker Quit Rates: An Analysis of Adaptive Worker Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(1), pages 29-58, February.
  19. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281.
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Cited by:
  1. Giulia BETTIN & Riccardo LUCCHETTI, 2010. "Interval Regression Models with;Endogenous Explanatory Variables," Working Papers 339, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  2. Pema, Elda & Mehay, Stephen, 2012. "Career effects of occupation-related vocational education: Evidence from the military's internal labor market," Economics of Education Review, Elsevier, vol. 31(5), pages 680-693.
  3. Agnieszka Sitko-Lutek & Aneta Karasek, 2013. "Innovations in Higher Education System," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management, ToKnowPress.

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