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Education Occupation Mismatch in Developing countries

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  • Khan, Bilal Muhammad

Abstract

This paper contributes to the literature highlighting the cost of education-occupation mismatch in the labor market. Most of the existing literature analyzing the education-occupation mismatch has been focused on the developed economies. Using the Skill Towards Employment and Productivity (STEP) data, this paper analyzes the loss in income as a result of the education-occupation mismatch in developing countries. The results suggest that vertically mismatched (over-educated as well as under-educated) workers earn significantly less than the "matched" workers, whereas there is no significant penalty for being a horizontally mismatched worker. This paper also found the over-educated and horizontally mismatched workers to be significantly less satisfied with their life as compared to the "matched".

Suggested Citation

  • Khan, Bilal Muhammad, 2019. "Education Occupation Mismatch in Developing countries," MPRA Paper 92324, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:92324
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    More about this item

    Keywords

    Education; wages; mismatch; Life satisfaction;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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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