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Education-Occupation Mismatch: Is There an Income Penalty?

  • Nordin, Martin

    ()

    (Lund University)

  • Persson, Inga

    ()

    (Lund University)

  • Rooth, Dan-Olof

    ()

    (Linnaeus University)

This paper adds to the small literature on the consequences of education-occupation mismatches. It examines the income penalty for field of education-occupation mismatches for men and women with higher education in Sweden and reveals that the penalty for such mismatches is large for both men and women. In fact, it is substantially larger than has been found for the US. Controlling for cognitive ability further establishes that the income penalty is not caused by a sorting by ability, at least for Swedish men. The income penalty for men decreases with work experience which is an indication that education-specific skills and work experience are substitutes to some extent. There is no evidence, though, that the mismatched individuals move to a matching occupation over time. Thus, for some, the income penalty seems to be permanent.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3806.

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Length: 22 pages
Date of creation: Oct 2008
Date of revision:
Publication status: published in: Economics of Education Review, 2010, 29 (6), 1047-1059
Handle: RePEc:iza:izadps:dp3806
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  1. Dolton, Peter & Vignoles, Anna, 2000. "The incidence and effects of overeducation in the U.K. graduate labour market," Economics of Education Review, Elsevier, vol. 19(2), pages 179-198, April.
  2. van Smoorenburg, M. S. M. & van der Velden, R. K. W., 2000. "The training of school-leavers: Complementarity or substitution?," Economics of Education Review, Elsevier, vol. 19(2), pages 207-217, April.
  3. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-80, June.
  4. H. Battu & C. R. Belfield & P. J. Sloane, 1999. "Overeducation Among Graduates: a cohort view," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 21-38.
  5. John Robst, 2007. "Education, College Major, and Job Match: Gender Differences in Reasons for Mismatch," Education Economics, Taylor & Francis Journals, vol. 15(2), pages 159-175.
  6. Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
  7. Bourdet , Yves & Persson, Inga, 2008. "Overeducation Among Swedish Youth," Working Papers 2008:8, Lund University, Department of Economics.
  8. Johansson, Mats & Katz, Katarina, 2007. "Wage differences between women and men in Sweden - the impact of skill mismatch," Working Paper Series 2007:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. John Robst, 2008. "Overeducation And College Major: Expanding The Definition Of Mismatch Between Schooling And Jobs," Manchester School, University of Manchester, vol. 76(4), pages 349-368, 07.
  10. Rubb, S., 2003. "Overeducation in the labor market: a comment and re-analysis of a meta-analysis," Economics of Education Review, Elsevier, vol. 22(6), pages 621-629, December.
  11. P. J. Sloane & H. Battu & P. T. Seaman, 1999. "Overeducation, undereducation and the British labour market," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1437-1453.
  12. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, 07.
  13. Martin Nordin, 2008. "Ability and rates of return to schooling—making use of the Swedish enlistment battery test," Journal of Population Economics, Springer, vol. 21(3), pages 703-717, July.
  14. Hartog, Joop & Oosterbeek, Hessel, 1988. "Education, allocation and earnings in the Netherlands: 0verschooling?," Economics of Education Review, Elsevier, vol. 7(2), pages 185-194, April.
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