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Skill mismatches and wages among European university graduates


  • Bárcena-Martín, Elena
  • Budría, Santiago
  • Moro-Egido, Ana I.


This paper uses comparable international data to examine the extent and wage effects of skill mismatches among European university graduates. The results show that the mismatched earn on average 11.7% less than their well-matched counterparts. This effect, however, cannot be regarded as constant across the conditional earnings distribution: workers with lower unobserved earnings capacity tend to be exposed to greater wage loses when they end up in mismatched jobs.

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  • Bárcena-Martín, Elena & Budría, Santiago & Moro-Egido, Ana I., 2011. "Skill mismatches and wages among European university graduates," MPRA Paper 33673, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33673

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    References listed on IDEAS

    1. Budría, Santiago & Moro-Egido, Ana I., 2008. "Education, educational mismatch, and wage inequality: Evidence for Spain," Economics of Education Review, Elsevier, vol. 27(3), pages 332-341, June.
    2. Allen, Jim & van der Velden, Rolf, 2001. "Educational Mismatches versus Skill Mismatches: Effects on Wages, Job Satisfaction, and On-the-Job Search," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 434-452, July.
    3. Kostas Mavromaras & Seamus Mcguinness & Nigel O'Leary & Peter Sloane & Yi King Fok, 2010. "The Problem Of Overskilling In Australia And Britain," Manchester School, University of Manchester, vol. 78(3), pages 219-241, June.
    4. Kostas Mavromaras & Seamus Mcguinness & Yin King Fok, 2009. "Assessing the Incidence and Wage Effects of Overskilling in the Australian Labour Market," The Economic Record, The Economic Society of Australia, vol. 85(268), pages 60-72, March.
    5. McGuinness, Seamus & Sloane, Peter J., 2011. "Labour market mismatch among UK graduates: An analysis using REFLEX data," Economics of Education Review, Elsevier, vol. 30(1), pages 130-145, February.
    6. Francis Green & Steven McIntosh, 2007. "Is there a genuine under-utilization of skills amongst the over-qualified?," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 427-439.
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    Cited by:

    1. Verbruggen, M. & van Emmerik, H. & van Gils, A.E.J. & Meng, C.M. & de Grip, A., 2015. "Does early-career underemployment impact future career success? A path dependency perspective," ROA Research Memorandum 007, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    2. Luca Cattani & Giovanni Guidetti & Giulio Pedrini, 2016. "Overeducation among Italian graduates: do different measures actually diverge?," Working Papers 77, AlmaLaurea Inter-University Consortium.
    3. Pablo Swedberg & Santiago Budria, 2015. "Education and earnings: how immigrants perform across the earnings distribution in Spain," Investigaciones de Economía de la Educación volume 10,in: Marta Rahona López & Jennifer Graves (ed.), Investigaciones de Economía de la Educación 10, edition 1, volume 10, chapter 42, pages 829-842 Asociación de Economía de la Educación.
    4. L. Cattani & G. Guidetti & G. Pedrini, 2014. "Assessing the incidence and wage effects of overeducation among Italian graduates using a new measure for educational requirements," Working Papers wp939, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Budría, Santiago & Swedberg, Pablo & Fonseca, Marlene, 2016. "Returns to Schooling among Immigrants in Spain: A Quantile Regression Approach," IZA Discussion Papers 10064, Institute for the Study of Labor (IZA).
    6. Susaeta, Lourdes & Apascaritei, Paula & Pin, José Ramón, 2013. "Manager’s Perception of Skills Mismatch in Spanish Companies," IESE Research Papers D/1080, IESE Business School.
    7. Davia, Maria A. & McGuinness, Seamus & O'Connell, Philip J., 2016. "Determinants of Regional Differences in Rates of Overeducation in Europe," IZA Discussion Papers 10250, Institute for the Study of Labor (IZA).

    More about this item


    skill mismatch; pay-penalty; inequality;

    JEL classification:

    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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