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I'm too clever for this job: a bivariate probit analysis on overeducation and job satisfaction in Australia

  • Christopher Fleming
  • Parvinder Kler

Using data from the first wave of the Household, Income and Labour Dynamics in Australia data set, this article establishes an empirical relationship between overeducation and workplace satisfaction for Australian adult males in the labour force. In a departure from much of the existing literature, both univariate and bivariate probit models are used to account for potential unobserved heterogeneity. We find that estimates in the univariate probit models are positively biased for three of the six measures of workplace satisfaction studied. This suggests that consideration should be given to the use of bivariate models when studying the determinants of workplace satisfaction and overeducation. Results show, although levels of satisfaction remain high, that across all measures of workplace satisfaction overeducated workers are less satisfied compared to their nonovereducated counterparts. This intimates that satisfaction levels should be viewed from a relative, rather than an absolute perspective. 'Pleasure in the job puts perfection in the work' Aristotle 384BC-322BC

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 40 (2008)
Issue (Month): 9 ()
Pages: 1123-1138

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Handle: RePEc:taf:applec:v:40:y:2008:i:9:p:1123-1138
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