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Major-Occupation Match Quality: An Empirical Measure Based on Relative Productivity

Author

Listed:
  • Leighton Margaret

    (University of St Andrews, St Andrews, UK)

  • Speer Jamin D.

    (University of Memphis, Memphis, USA)

Abstract

The match quality between a worker’s field of study in college and her occupation is an important labor market outcome. Yet this match quality is difficult to define and measure. We propose a new measure of major-occupation match quality based on relative productivity. A worker is well-matched if graduates from her major, working in her occupation, have high earnings relative to other major-occupation pairs. We show that some majors can be very well-matched or very badly matched (e.g. nursing), while others are never very well- or badly matched (e.g. humanities). Our measure has two desirable features: it is continuous, and it can be estimated in any data set including field of study, wage, and occupation.

Suggested Citation

  • Leighton Margaret & Speer Jamin D., 2023. "Major-Occupation Match Quality: An Empirical Measure Based on Relative Productivity," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(1), pages 285-292, January.
    • Handle: RePEc:bpj:bejeap:v:23:y:2023:i:1:p:285-292:n:3
    DOI: 10.1515/bejeap-2022-0254
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    More about this item

    Keywords

    college major; match quality; mismatch; occupations; higher education;
    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
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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