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Vertical, Horizontal and Residual Skills Mismatch in the Australian Graduate Labour Market

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  • Ian W. Li
  • Mark Harris
  • Peter J. Sloane

Abstract

Studies of the Australian graduate labour market have found a substantial incidence of, and significant earnings effects from, vertical mismatch. This study extends the literature by examining horizontal mismatch, an important dimension of mismatch in its own right and which has been less studied. Over a quarter of Australian graduates are found to be mismatched, although the incidence is reduced in the longer term. Graduates from fields of study which are more occupation‐specific were found to be less likely to be mismatched. Earnings penalties were found for all forms of mismatch, and affected both general and specific fields of study.

Suggested Citation

  • Ian W. Li & Mark Harris & Peter J. Sloane, 2018. "Vertical, Horizontal and Residual Skills Mismatch in the Australian Graduate Labour Market," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 301-315, September.
    • Handle: RePEc:bla:ecorec:v:94:y:2018:i:306:p:301-315
    DOI: 10.1111/1475-4932.12413
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    Cited by:

    1. Sun, Ting & Bian, Xuezi & Liu, Jianxu & Wang, Rui & Sriboonchitta, Songsak, 2023. "The economic and social effects of skill mismatch in China: A DSGE model with skill and firm heterogeneity," Economic Modelling, Elsevier, vol. 125(C).
    2. Ian Li & Andrew Williams & Ken Clements, 2023. "Labour Market Outcomes of Graduates in Economics in Australia," Economic Papers, The Economic Society of Australia, vol. 42(3), pages 306-323, September.
    3. Sam Jones & Ricardo Santos & Gimelgo Xirinda, 2020. "Misinformed, mismatched, or misled?: Explaining the gap between expected and realized graduate earnings in Mozambique," WIDER Working Paper Series wp-2020-47, World Institute for Development Economic Research (UNU-WIDER).
    4. Manuel, Nick, 2024. "Does the labour market value field of study specific knowledge? An alignment score based approach," Economics of Education Review, Elsevier, vol. 101(C).
    5. Rory David Watts & Devin C. Bowles & Colleen Fisher & Ian W. Li, 2021. "What Do Public Health Graduates Do and Where Do They Go? An Analysis of Job Destinations and Mismatch in Australian Public Health Graduates," IJERPH, MDPI, vol. 18(14), pages 1-16, July.

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