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Job Mismatches and Labour Market Outcomes: Panel Evidence on Australian University Graduates

Author

Listed:
  • Mavromaras, Kostas G.

    () (NILS, Flinders University)

  • McGuinness, Seamus

    () (Economic and Social Research Institute, Dublin)

  • O'Leary, Nigel C.

    () (Swansea University)

  • Sloane, Peter J.

    () (Swansea University)

  • Wei, Zhang

    () (NILS, Flinders University)

Abstract

The interpretation of graduate mismatch manifested either as overeducation or as overskilling remains problematical. This paper uses annual panel information on both educational and skills mismatches uniquely found in the HILDA survey to analyse the relationship of both mismatches with pay, job satisfaction and job mobility. We find that overeducation and overskilling are distinct phenomena with different labour market outcomes and that their combination results in the most severe negative labour market outcomes. Using panel methodology reduces strongly the size of many relevant coefficients, questioning previous cross-section results and suggesting the presence of considerable unobserved heterogeneity which varies by gender.

Suggested Citation

  • Mavromaras, Kostas G. & McGuinness, Seamus & O'Leary, Nigel C. & Sloane, Peter J. & Wei, Zhang, 2010. "Job Mismatches and Labour Market Outcomes: Panel Evidence on Australian University Graduates," IZA Discussion Papers 5083, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5083
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    Cited by:

    1. Seamus McGuinness & Luis Ortiz, 2016. "Skill gaps in the workplace: measurement, determinants and impacts," Industrial Relations Journal, Wiley Blackwell, vol. 47(3), pages 253-278, May.
    2. Mavromaras, Kostas G. & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute for the Study of Labor (IZA).
    3. Carroll, David & Tani, Massimiliano, 2013. "Over-education of recent higher education graduates: New Australian panel evidence," Economics of Education Review, Elsevier, vol. 32(C), pages 207-218.
    4. David Carroll & Massimiliano Tani, 2015. "Job search as a determinant of graduate over-education: evidence from Australia," Education Economics, Taylor & Francis Journals, vol. 23(5), pages 631-644, October.
    5. Caroleo, Floro Ernesto & Pastore, Francesco, 2015. "Overeducation: A Disease of the School-to-Work Transition System," IZA Discussion Papers 9049, Institute for the Study of Labor (IZA).
    6. Leszek Wincenciak, 2016. "Educational mismatches and earnings in Poland: are graduates penalised for being overeducated?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    7. Hans G. Bloemen, 2014. "Language Proficiency of Migrants: The Relation with Job Satisfaction and Skill Matching," Tinbergen Institute Discussion Papers 14-148/V, Tinbergen Institute.
    8. Kornélia Lazányi, 2012. "Study for nothing? Literature overview of labour market opportunities for individuals with tertiary education," Proceedings of FIKUSZ '12,in: Pál Michelberger (ed.), Proceedings of FIKUSZ '12, pages 37-46 Óbuda University, Keleti Faculty of Business and Management.

    More about this item

    Keywords

    mobility; satisfaction; overeducation; overskilling; wages;

    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

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