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The Problem Of Overskilling In Australia And Britain

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  • KOSTAS MAVROMARAS
  • SEAMUS MCGUINNESS
  • NIGEL O'LEARY
  • PETER SLOANE
  • YI KING FOK

Abstract

In this paper we examine the parallel trends in education and labour market developments in Australia and Britain using unique information on reported overskilling in the workplace. To a degree, the overskilling information overcomes the problem of unobserved ability differences and focuses on the actual job–employee mismatch more than the conventional overeducation variables can. The paper finds that the prevalence of overskilling decreases with education at least for Australia, but the wage penalty associated with overskilling increases with education. Although the prevalence of overskilling differs between Australia and Britain, the pattern of the wage penalties is fairly similar in both countries.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:manchs:v:78:y:2010:i:3:p:219-241
    DOI: 10.1111/j.1467-9957.2009.02136.x
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    References listed on IDEAS

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    7. Battu, H. & Belfield, C.R. & Sloane, P.J., 2000. "How Well Can We Measure Graduate Over- Education and Its Effects?," National Institute Economic Review, National Institute of Economic and Social Research, vol. 171, pages 82-93, January.
    8. O'Leary, Nigel C. & Sloane, Peter J., 2005. "The Return to a University Education in Great Britain," National Institute Economic Review, National Institute of Economic and Social Research, vol. 193, pages 75-89, July.
    9. Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
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    More about this item

    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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