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I'm too clever for this job: a bivariate probit analysis on overeducation and job satisfaction in Australia

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  • Christopher Fleming
  • Parvinder Kler

Abstract

Using data from the first wave of the Household, Income and Labour Dynamics in Australia data set, this article establishes an empirical relationship between overeducation and workplace satisfaction for Australian adult males in the labour force. In a departure from much of the existing literature, both univariate and bivariate probit models are used to account for potential unobserved heterogeneity. We find that estimates in the univariate probit models are positively biased for three of the six measures of workplace satisfaction studied. This suggests that consideration should be given to the use of bivariate models when studying the determinants of workplace satisfaction and overeducation. Results show, although levels of satisfaction remain high, that across all measures of workplace satisfaction overeducated workers are less satisfied compared to their nonovereducated counterparts. This intimates that satisfaction levels should be viewed from a relative, rather than an absolute perspective. 'Pleasure in the job puts perfection in the work' Aristotle 384BC-322BC

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 9 ()
Pages: 1123-1138

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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1123-1138

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Cited by:
  1. McGuinness, Seamus & Sloane, Peter J., 2009. "Labour Market Mismatch Among UK Graduates: An Analysis Using REFLEX Data," IZA Discussion Papers 4168, Institute for the Study of Labor (IZA).
  2. Tani, Massimiliano, 2012. "Does immigration policy affect the education--occupation mismatch? Evidence from Australia," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 38(2), pages 111-141.
  3. Castellano, Rosalia & Punzo, Gennaro & Rocca, Antonella, 2013. "Women’s job search propensity and selection effect in European labour markets," MPRA Paper 50869, University Library of Munich, Germany.
  4. Michael Quinn & Stephen Rubb, 2011. "Spouse Overeducation and Family Migration: Evidence from the US," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 36-45, March.
  5. Iñaki Iriondo Mújica & María Dolores Grandal & Elena Gallego, 2009. "Inserción laboral y calidad del empleo de los licenciados de la Universidad Complutense," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 09-05, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
  6. Humpert, Stephan, 2013. "Gender Differences in Life Satisfaction and Social Participation," MPRA Paper 46775, University Library of Munich, Germany.
  7. Jones, Melanie K. & Mavromaras, Kostas G. & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute for the Study of Labor (IZA).
  8. Melanie K. Jones & Peter J. Sloane, 2010. "Disability and Skill Mismatch," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 101-114, 09.
  9. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Entrepreneurship Dynamics: Entry Routes, Business-Owner's Persistence and Exit Modes," CEF.UP Working Papers 1310, Universidade do Porto, Faculdade de Economia do Porto.
  10. Piper, Alan T., 2012. "Heaven knows I’m miserable now: overeducation and reduced life satisfaction," MPRA Paper 46926, University Library of Munich, Germany, revised May 2013.

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