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

Author

Listed:
  • Mavromaras, Kostas

    (University of Adelaide)

  • McGuinness, Seamus

    (Economic and Social Research Institute, Dublin)

  • O'Leary, Nigel C.

    (Swansea University)

  • Sloane, Peter J.

    (Swansea University)

  • Wei, Zhang

    (University of Adelaide)

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 & 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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5083
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    Citations

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    Cited by:

    1. Marco Pecoraro, 2014. "Is There Still a Wage Penalty for Being Overeducated But Well-matched in Skills? A Panel Data Analysis of a Swiss Graduate Cohort," LABOUR, CEIS, vol. 28(3), pages 309-337, September.
    2. Sergey Roshchin & Victor Rudakov, 2015. "Do Starting Salaries for Graduates Measure the Quality of Education? A Review of Studies by Russian and Foreign Authors," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 1, pages 137-181.
    3. Floro Ernesto Caroleo & Francesco Pastore, 2012. "Overeducation at a glance. Determinants and wage effects of the educational mismatch, looking at the AlmaLaurea data," Discussion Papers 18_2012, CRISEI, University of Naples "Parthenope", Italy.
    4. Carroll, David & Tani, Massimiliano, 2011. "Labour Market Under-Utilisation of Recent Higher Education Graduates: New Australian Panel Evidence," IZA Discussion Papers 6047, Institute of Labor Economics (IZA).
    5. Baert, Stijn & Cockx, Bart & Verhaest, Dieter, 2013. "Overeducation at the start of the career: Stepping stone or trap?," Labour Economics, Elsevier, vol. 25(C), pages 123-140.
    6. Le Wen & Sholeh A. Maani, 2019. "Job mismatches and career mobility," Applied Economics, Taylor & Francis Journals, vol. 51(10), pages 1010-1024, February.
    7. 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.
    8. 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.
    9. 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.
    10. Wen, Le & Maani, Sholeh A. & Dong, Zhi, 2023. "Educational Job Mismatch, Job Satisfaction, On-the-Job Training, and Employee Quit Behavior: A Dynamic Analytical Approach," IZA Discussion Papers 15869, Institute of Labor Economics (IZA).
    11. Jones, Melanie K. & Mavromaras, Kostas & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute of Labor Economics (IZA).
    12. 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.
    13. Tani, Massimiliano, 2012. "Does Immigration Policy Affect the Education-Occupation Mismatch? Evidence from Australia," IZA Discussion Papers 6937, Institute of Labor Economics (IZA).
    14. Caroleo, Floro Ernesto & Pastore, Francesco, 2015. "Overeducation: A Disease of the School-to-Work Transition System," IZA Discussion Papers 9049, Institute of Labor Economics (IZA).
    15. 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.
    16. 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;
    All these keywords.

    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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