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Vertical, Horizontal and Residual Skills Mismatch in the Australian Graduate Labour Market

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  • Ian W. Li
  • Mark Harris
  • Peter J. Sloane

Abstract

Studies of the Australian graduate labour market have found a substantial incidence of, and significant earnings effects from, vertical mismatch. This study extends the literature by examining horizontal mismatch, an important dimension of mismatch in its own right and which has been less studied. Over a quarter of Australian graduates are found to be mismatched, although the incidence is reduced in the longer term. Graduates from fields of study which are more occupation‐specific were found to be less likely to be mismatched. Earnings penalties were found for all forms of mismatch, and affected both general and specific fields of study.

Suggested Citation

  • Ian W. Li & Mark Harris & Peter J. Sloane, 2018. "Vertical, Horizontal and Residual Skills Mismatch in the Australian Graduate Labour Market," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 301-315, September.
  • Handle: RePEc:bla:ecorec:v:94:y:2018:i:306:p:301-315
    DOI: 10.1111/1475-4932.12413
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    File URL: https://doi.org/10.1111/1475-4932.12413
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    References listed on IDEAS

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    7. Ian W. Li, 2014. "Labour Market Performance of Indigenous University Graduates in Australia: An ORU Perspective," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 87-110.
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