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Personality Can Mitigate the Wage Penalty of Educational Mismatch

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  • Martin Krejčí
  • Jiří Balcar

Abstract

The paper examines the incidence of educational mismatch and its impact on workers’ wages. Using data from two independent surveys of employees aged 25–54 conducted in 2011 and 2022, we show that overeducated workers earn a wage premium; however, this premium amounts to only about one-third of the wage premium associated with having the required education. In contrast, undereducated workers and those experiencing horizontal educational mismatch face wage penalties. Further analysis revealed that psychological traits, such as adaptability, openness and a sense of belonging, mitigate the wage penalties associated with horizontal educational mismatch and undereducation.

Suggested Citation

  • Martin Krejčí & Jiří Balcar, 2026. "Personality Can Mitigate the Wage Penalty of Educational Mismatch," Eastern European Economics, Taylor & Francis Journals, vol. 64(4), pages 543-566, July.
    • Handle: RePEc:mes:eaeuec:v:64:y:2026:i:4:p:543-566
    DOI: 10.1080/00128775.2025.2492119
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