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The Wage Impact of Education and Skills Mismatch: Evidence from Systematic Literature Review

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  • Nor Ezrine Yussoff

    (Faculty of Economics & Management, Universiti Kebangsaan Malaysia, Malaysia Faculty of Administrative Science & Policy Studies, Universiti Teknologi MARA Cawangan Negeri Sembilan, Kampus Seremban, Malaysia)

  • Noorasiah Sulaiman

    (Faculty of Economics & Management, Universiti Kebangsaan Malaysia, Malaysia)

Abstract

Over recent decades, economists have extensively explored the relationship between education and the labour market. This paper offers a systematic review of the 19 selected papers covering the growing literature on the measurement of mismatch incidence and the impact of wages. We discover that the different models substantially provide different incidence rates. Furthermore, the wage impact significantly affected the individuals with a higher level of education but diverged along the wage distribution. Lastly, the findings suggest a direction and roadmap for future research on the prevalence of mismatch and its implications for wages and distribution among individuals.

Suggested Citation

  • Nor Ezrine Yussoff & Noorasiah Sulaiman, 2025. "The Wage Impact of Education and Skills Mismatch: Evidence from Systematic Literature Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 66-79, January.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:15:p:66-79
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    References listed on IDEAS

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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 434-452, July.
    2. Bender, Keith A. & Roche, Kristen, 2013. "Educational mismatch and self-employment," Economics of Education Review, Elsevier, vol. 34(C), pages 85-95.
    3. Allen, J.P. & Levels, M. & van der Velden, R.K.W., 2013. "Skill mismatch and skill use in developed countries: Evidence from the PIAAC study," ROA Research Memorandum 017, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    4. Robert J. Barro, 2001. "Human Capital and Growth," American Economic Review, American Economic Association, vol. 91(2), pages 12-17, May.
    5. Allen, J.P. & Levels, M. & van der Velden, R.K.W., 2013. "Skill mismatch and use in developed countries: Evidence from the PIAAC study," Research Memorandum 061, Maastricht University, Graduate School of Business and Economics (GSBE).
    6. Vieira, José A. Cabral, 2005. "Skill mismatches and job satisfaction," Economics Letters, Elsevier, vol. 89(1), pages 39-47, October.
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