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The causes and consequences of field-of-study mismatch: An analysis using PIAAC

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  • Guillermo Montt

    (OECD)

Abstract

Field-of-study mismatch occurs when workers educated in a particular field work in another. It is conceptually distinct from qualifications or skills mismatch, although a part of qualifications and skills mismatch results from graduates from a particular field having to downgrade to find work in another field. Some studies have identified labour market dynamics related to field-of-study mismatch, but few (if any) have sought to directly understand the interplay between labour supply factors (the types of skills brought to the workplace) and the labour demand factors (the types of skills demanded by employers) in field-of-study mismatch. Using data from the Programme for International Assessment of Adult Competencies’ Survey of Adult Skills (PIAAC), this paper shows that although students may choose to specialise in a particular field, it is not solely up to them to actually work in that field. In accordance with assignment theories, both the degree of saturation of a particular field in the labour market and the level of generic skills of a particular field predict the occurrence of field-of-study mismatch, highlighting that mismatch is the result of both labour supply- and demand-side factors. The paper then evaluates the costs to individuals – in terms of wages, risk of being out of work and job satisfaction. Findings suggest that the costs of field-of-study mismatch may only be high in terms of individual earnings when it is associated to qualification mismatch. For economies, field-of-study mismatch, when associated with qualifications mismatch, can amount to important costs, meriting the attention of policy makers to better aligning course places to skill needs or by encouraging skill transferability across fields. L’inadéquation du domaine d’études se produit lorsque des travailleurs, formés dans un domaine particulier, travaillent dans un autre domaine. Conceptuellement, elle se distingue de l’inadéquation des compétences ou des qualifications, même si, une part de ces dernières se produit lorsque les diplômés d’un domaine d’étude doivent se déclasser pour trouver un emploi dans un autre domaine. Certaines études ont montré que la dynamique du marché du travail est liée à l’inadéquation du domaine d’études, mais peu (ou pas) ont directement tenté de comprendre la relation entre les facteurs d’offre de travail (les types de compétences amenées par les travailleurs sur le lieu de travail) et les facteurs de demande de travail (les types de compétences demandées par les employeurs), dans l’inadéquation du domaine d’études. En utilisant des données du Programme pour l’Évaluation Internationale des Compétences des Adultes (PIAAC), ce document montre que même si les étudiants ont la possibilité de choisir de se spécialiser dans un domaine particulier, ils ne sont pas seuls responsables de pouvoir effectivement travailler dans ce domaine. Conformément aux théories sur les choix d’orientation, tant le degré de saturation d’un domaine sur le marché du travail que le degré de compétences génériques du domaine d’études, prédisent l’apparition d’une inadéquation du domaine d’études, soulignant que cette dernière est le résultat de facteurs liés à la fois à l’offre et à la demande de travail. Le document évalue ensuite les coûts, pour les individus, en termes de salaires, de risque d’être sans travail et de satisfaction au travail. Les résultats suggèrent que les coûts de l’inadéquation du domaine d’études peuvent être élevés au niveau individuel que lorsqu’elle est associée à l’inadéquation des qualifications. Pour les économies, l’inadéquation du domaine d’études, quand elle est associée à l’inadéquation des qualifications, peut signifier des coûts importants, méritant l’attention des décideurs politiques en ajustant mieux les places vacantes dans les programmes d’études aux besoins de compétences, ou en encourageant les transferts de compétences.

Suggested Citation

  • Guillermo Montt, 2015. "The causes and consequences of field-of-study mismatch: An analysis using PIAAC," OECD Social, Employment and Migration Working Papers 167, OECD Publishing.
  • Handle: RePEc:oec:elsaab:167-en
    DOI: 10.1787/5jrxm4dhv9r2-en
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    Cited by:

    1. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
    2. Sedláček Jan & Zelenka Martin, 2021. "The effects of education-job (mis)match on the earnings of graduates in the Czech Republic," Review of Economic Perspectives, Sciendo, vol. 21(2), pages 105-150, June.
    3. Han, Joseph, 2020. "Mismatches in the labor market for college graduates: Focusing on field-of-study choice," KDI Focus 99, Korea Development Institute (KDI).
    4. Ahmet Alper Ege & Erkan Erdil, 2023. "Determinants of overlapping mismatch in the Turkish labour market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-9, December.
    5. Jiang, Shengjun & Guo, Yilan, 2022. "Reasons for college major-job mismatch and labor market outcomes: Evidence from China," China Economic Review, Elsevier, vol. 74(C).
    6. Falilou Fall & Christine Lewis, 2017. "Fostering Productivity for Income Convergence in the Czech Republic," OECD Economics Department Working Papers 1362, OECD Publishing.
    7. David Carey, 2017. "Adapting to the changing labour market in New Zealand," OECD Economics Department Working Papers 1420, OECD Publishing.

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