Kostas Mavromaras () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne and IZA, Bonn) Seamus McGuinness (Economic and Social Research Institute, Dublin IZA, Bonn) Nigel O’Leary (University of Swansea) Peter Sloane (University of Swansea and IZA, Bonn) Yin King Fok () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
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This paper examines the parallel trends in education and labour market developments in Australia and Britain. It uses unique information in the WERS and HILDA surveys on reported overskilling in the workplace. To a degree, the overskilling information overcomes the problem of unobserved ability differences and focuses on the actual jobemployee mismatch more than the conventional overeducation variables can. The paper finds that the prevalence of overskilling decreases with education at least for Australia, but the wage penalty associated with overskilling increases with education. Although the general patterns of overskilling (prevalence and penalties) are fairly similar between Australia and Britain, the problem appears to be greater in Britain.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2007n33.
Length: 39 pages Date of creation: Nov 2007 Date of revision: Handle: RePEc:iae:iaewps:wp2007n33
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia Phone: +61 3 8344 2100 Fax: +61 3 8344 2111 Email: Web page: http://www.melbourneinstitute.com/ More information through EDIRC
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