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The Problem of Overskilling in Australia and Britain

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Author Info

  • Mavromaras, Kostas G.

    () (NILS, Flinders University)

  • McGuinness, Seamus

    () (Economic and Social Research Institute, Dublin)

  • O'Leary, Nigel C.

    () (Swansea University)

  • Sloane, Peter J.

    () (Swansea University)

  • Fok, Yin King

    () (University of Melbourne)

Abstract

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 job-employee 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3136.

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Length: 44 pages
Date of creation: Nov 2007
Date of revision:
Publication status: published in: Manchester School, 2010, 78(3), 219-238
Handle: RePEc:iza:izadps:dp3136

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Related research

Keywords: Australia; overeducation; overskilling; Britain;

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References

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  1. 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.
  2. Sloane, Peter J. & O'Leary, Nigel C., 2004. "The Return to a University Education in Great Britain," IZA Discussion Papers 1199, Institute for the Study of Labor (IZA).
  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.
  4. Di Pietro, Giorgio & Peter Urwin, 2003. "Education and Skills Mismatch in the Italian Graduate Labour Market," Royal Economic Society Annual Conference 2003 59, Royal Economic Society.
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Cited by:
  1. Mavromaras, Kostas G. & Mahuteau, Stéphane & Sloane, Peter J. & Wei, Zhang, 2012. "The Effect of Overskilling Dynamics on Wages," IZA Discussion Papers 6985, Institute for the Study of Labor (IZA).
  2. Bárcena-Martín, Elena & Budría, Santiago & Moro-Egido, Ana I., 2011. "Skill mismatches and wages among European university graduates," MPRA Paper 33673, University Library of Munich, Germany.
  3. George Messinis, 2009. "Earnings and Languages in the Family: Second-Generation Australians," The Economic Record, The Economic Society of Australia, vol. 85(s1), pages S59-S73, 09.
  4. Patrizia Ordine & Giuseppe Rose, 2011. "Educational Mismatch and Wait Unemployment," Working Papers 19, AlmaLaurea Inter-University Consortium.
  5. Mavromaras, Kostas & McGuinness, Seamus, 2012. "Overskilling dynamics and education pathways," Economics of Education Review, Elsevier, vol. 31(5), pages 619-628.
  6. 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).

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