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Job Mismatches and Labour Market Outcomes

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Author Info

  • Mavromaras, Kostas

    (NILS, Flinders University of South Australia)

  • McGuinness, Seamus

    (ESRI)

  • O?Leary, Nigel

    (WELMERC, Swansea University)

  • Sloane, Peter

    (IZA, Bonn)

  • Fok, Yin King

    (Melbourne Institute, University of Melbourne)

Abstract

Interpretation of the phenomenon of graduate overeducation remains problematical. In an attempt to resolve at least some of the issues this paper makes use of the panel element of the HILDA survey, distinguishing between four possible combinations of education/skills mismatch. For men we find a significant pay penalty only for those who are both overskilled and overeducated, while for women there is a smaller but significant pay penalty in all cases of mismatch. Overeducation does not have any negative effect on the job satisfaction of either men or women, while overskilling either on its own or jointly with overeducation does so. Finally, overeducation has no significant effect on the job mobility of either men or women, though there is a significant positive effect on both voluntary and involuntary job loss in men who are both overskilled and overeducated, with the results again differing for women. At least for a substantial number of workers it appears, therefore, that overeducation represents a matter of choice (or is possibly a consequence of low ability for that level of education), while overskilling imposes real costs on the individuals concerned.

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Bibliographic Info

Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP314.

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Date of creation: Sep 2009
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Handle: RePEc:esr:wpaper:wp314

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Keywords: Overeducation; Overskilling; Wages; Job Mobility; Job Satisfaction; Gender;

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References

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  1. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
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Cited by:
  1. Caroleo, Floro Ernesto & Pastore, Francesco, 2013. "Overeducation at a Glance: Determinants and Wage Effects of the Educational Mismatch, Looking at the AlmaLaurea Data," IZA Discussion Papers 7788, Institute for the Study of Labor (IZA).
  2. Stijn Baert & Bart Cockx & Dieter Verhaest, 2012. "Overeducation at the Start of the Career - Stepping Stone or Trap?," CESifo Working Paper Series 3825, CESifo Group Munich.
  3. Kostas Mavromaras & Stéphane Mahuteau & Peter Sloane & Zhang Wei, 2013. "The effect of overskilling dynamics on wages," Education Economics, Taylor & Francis Journals, vol. 21(3), pages 281-303, July.
  4. Sandra Nieto, 2014. "“Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data”," IREA Working Papers 201411, University of Barcelona, Research Institute of Applied Economics, revised Mar 2014.
  5. Carroll, David & Tani, Massimiliano, 2011. "Labour Market Under-Utilisation of Recent Higher Education Graduates: New Australian Panel Evidence," IZA Discussion Papers 6047, Institute for the Study of Labor (IZA).
  6. Tani, Massimiliano, 2012. "Does Immigration Policy Affect the Education-Occupation Mismatch? Evidence from Australia," IZA Discussion Papers 6937, Institute for the Study of Labor (IZA).
  7. Bloemen, Hans, 2013. "Language Proficiency of Migrants: The Relation with Job Satisfaction and Matching," IZA Discussion Papers 7366, Institute for the Study of Labor (IZA).
  8. Marco PECORARO, 2011. "Is there still a wage penalty for being overeducated but well-matched in skills? A panel data analysis of a Swiss graduate cohort," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  9. Sandra Nieto, 2014. "“Overeducation, skills and wage penalty: Evidence for Spain using PIAAC data”," AQR Working Papers 201406, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2014.
  10. Villa, Juan M., 2009. "A Survey on Labor Markets Imperfections in Mexico Using a Stochastic Frontier," MPRA Paper 21201, University Library of Munich, Germany.

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