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Job mismatches and career mobility

Author

Listed:
  • Le Wen
  • Sholeh A. Maani

Abstract

Does over-education assist or hinder occupational advancement? Career mobility theory hypothesizes that over-education leads to a higher level of occupational advancement and wage growth over time, with mixed international empirical evidence. This paper re-tests career mobility theory directly using a rich Australian longitudinal data set. A dynamic random effects probit model is employed to examine upward occupational mobility, considering two-digit occupational rank advancement and wage growth over three-year intervals. The ‘Household, Income and Labour Dynamics in Australia’ data across nine years are employed, and a Mundlak correction model is adopted to adjust for unobserved heterogeneity effects and potential endogeneity, both of which are important to over-education analysis. Contrary to career theory, the results point to job mismatch as an economic concern rather than a passing phase, regardless of whether or not workers are skill-matched. Results further show the importance of adjusting for endogeneity.

Suggested Citation

  • Le Wen & Sholeh A. Maani, 2019. "Job mismatches and career mobility," Applied Economics, Taylor & Francis Journals, vol. 51(10), pages 1010-1024, February.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:10:p:1010-1024
    DOI: 10.1080/00036846.2018.1524569
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    Citations

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    Cited by:

    1. Jan Aleksander Baran, 2020. "Are Poles stuck in overeducation? Individual dynamics of educational mismatch in Poland," Working Papers 2020-23, Faculty of Economic Sciences, University of Warsaw.
    2. Theresa Geißler, 2025. "Who bears the brunt: Tuition fees and educational mismatch," IAAEU Discussion Papers 202504, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    3. Luz A. Flórez & Leidy Gómez D., 2019. "Skill mismatch and labour turnover in a developing country: the Colombian case," Borradores de Economia 1099, Banco de la Republica de Colombia.
    4. Esperanza Vera‑Toscano & Elena C. Meroni, 2021. "Correction to: An Age–Period–Cohort Approach to the Incidence and Evolution of Overeducation and Skills Mismatch," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 779-779, January.
    5. Esposito, Piero & Scicchitano, Sergio, 2022. "Educational mismatch and labour market transitions in Italy: Is there an unemployment trap?," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 138-155.
    6. Sholeh A. Maani & Le Wen, 2021. "Over-education and immigrant earnings: a penalized quantile panel regression analysis," Applied Economics, Taylor & Francis Journals, vol. 53(24), pages 2771-2790, May.
    7. Maite Bl'azquez Cuesta & Marco A. P'erez Navarro & Roc'io S'anchez-Mangas, 2024. "Overeducation under different macroeconomic conditions: The case of Spanish university graduates," Papers 2407.04437, arXiv.org.
    8. Wen, Le & Maani, Sholeh A., 2023. "Earnings Penalty of Educational Mismatch: A Comparison of Alternative Methods of Assessing Over-Education," IZA Discussion Papers 15943, Institute of Labor Economics (IZA).
    9. Giuliano, Romina & Mahy, Benoît & Rycx, François & Vermeylen, Guillaume, 2024. "Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts," IZA Discussion Papers 16913, Institute of Labor Economics (IZA).
    10. Tianzhi Gao & Hui Feng, 2024. "Examining the impact of job matching on workers’ non-cognitive skills: insights from China’s labor market," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    11. Zhidi Pan & Yan Wang & Zhijun Liu, 2025. "Over-Education, Job Satisfaction, and Intention to Quit: Evidence from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 176(1), pages 287-307, January.
    12. Tea Petrin & Dragana Radicic, 2023. "Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?," The Journal of Technology Transfer, Springer, vol. 48(1), pages 181-215, February.
    13. Romina Giuliano & Benoît Mahy & François Ryckx & Guillaume Vermeylen, 2024. "Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts," LIDAM Discussion Papers IRES 2024003, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    14. Mark Wooden, 2021. "Job Characteristics and the Changing Nature of Work," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 494-505, December.
    15. Yu Shi & Hongfei Yu & Yonglin Huang & Xinyuan Shen & Wei Guo, 2023. "Over-education and Job Satisfaction among New Graduates in China: A Gender Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(1), pages 51-74, November.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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