Assessing the Incidence and Wage Effects of Overskilling in the Australian Labour Market
This paper examines the incidence and wage effects of overskilling in Australia. It finds that approximately 30 per cent of employees believed themselves to be moderately overskilled and 11 per cent believed themselves to be severely overskilled. The incidence of skills mismatch varied little when the sample was split by education. After controlling for individual and job characteristics as well as the potential bias arising from individual unobserved heterogeneity, severely overskilled workers suffer an average wage penalty of 10.2 per cent with the penalty ranging from about 6 per cent among vocationally qualified employees to just less than 20 per cent for graduates. Copyright © 2009 The Economic Society of Australia.
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Volume (Year): 85 (2009)
Issue (Month): 268 (03)
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References listed on IDEAS
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- Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
- Parvinder Kler, 2005. "Graduate overeducation in Australia: A comparison of the mean and objective methods," Education Economics, Taylor & Francis Journals, vol. 13(1), pages 47-72.
- Ingrid Linsley, 2005. "Causes of Overeducation in the Australian Labour Market," Department of Economics - Working Papers Series 940, The University of Melbourne.
- Derby Voon & Paul W. Miller, 2005. "Undereducation and Overeducation in the Australian Labour Market," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S22-S33, 08.
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