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Education and skill mismatches: wage and job satisfaction consequences

Author

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  • Lourdes Badillo‐Amador
  • Luis E. Vila

Abstract

Purpose - This paper aims to highlight the relevance of examining education and skill job‐worker mismatches as two different, although simultaneous, phenomena of the labor market. Most previous literature does not take into account skill mismatch, and a number of papers deal with both kinds of mismatches as equivalent. Design/methodology/approach - Spanish data from the European Community Household Panel (ECHP) survey for the year 2001 are used to examine the degree of statistical association between both education and skill mismatches, and to estimate wage equations as well as job satisfaction equations, considering satisfaction with pay, with the type of job and overall job satisfaction, in order to analyze the consequences of both types of mismatches from the workers’ viewpoint. Findings - The statistical analysis shows that education and skill mismatches are weakly related in the Spanish labor market. The econometric analysis reveals that skill mismatches appear as key determinants of workers’ job satisfaction, while education mismatches have much weaker impacts, if any, on workers’ job satisfaction; however, both skill and education mismatches have negative impacts on wages. Practical implications - The analysis points out that the research strategy that considers education mismatch as a proxy for the study of the effects of skill mismatch is rather weak because skill and education mismatches appear to capture different aspects of the accuracy of the job‐worker pairing, and, therefore, they have separate consequences for workers, both in monetary and non‐monetary terms. Skill mismatches are perceived by workers as a much more relevant problem than education mismatches. The wage and job satisfaction consequences of skill mismatches are strongly negative; to the contrary, education mismatches show much weaker effects. Originality/value - The paper emphasizes that neglecting the effects of skill mismatch along with those of education mismatch in the analysis of the monetary and non‐monetary consequences of inadequate job‐worker pairing can lead to erroneous interpretations of the facts.

Suggested Citation

  • Lourdes Badillo‐Amador & Luis E. Vila, 2013. "Education and skill mismatches: wage and job satisfaction consequences," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(5), pages 416-428, August.
    • Handle: RePEc:eme:ijmpps:v:34:y:2013:i:5:p:416-428
    DOI: 10.1108/IJM-05-2013-0116
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    Citations

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    Cited by:

    1. Vieira, José António Cabral, 2019. "Climbing the Ladders of Job Satisfaction and Employees' Organizational Commitment: A Semi-Nonparametric Approach," IZA Discussion Papers 12787, Institute of Labor Economics (IZA).
    2. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia: The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland Institute for Emerging Economies (BOFIT).
    3. Luz A. Flórez & Leidy Gómez D., 2019. "Skill mismatch and labour turnover in a developing country: the Colombian case," Borradores de Economia 1099, Banco de la Republica de Colombia.
    4. Salwaty Jamaludin & Rusmawati Said & Normaz Wana Ismail & Norashidah Mohamed Nor, 2021. "Are Jobs Available in the Market? A Perspective from the Supply Side," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    5. Barbara Ermini & Luca Papi & Francesca Scaturro, 2022. "Over-education and the great recession. The case of Italian Ph.D graduates," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 76(3), pages 17-28, July-Sept.
    6. Perugini, Cristiano, 2020. "Patterns and drivers of household income dynamics in Russia : The role of access to credit," BOFIT Discussion Papers 11/2020, Bank of Finland, Institute for Economies in Transition.
    7. Allen, J.P. & Badillo-Amador, L. & van der Velden, R.K.W., 2013. "Wage effects of job-worker mismatches: Heterogeneous skills or institutional effects?," ROA Research Memorandum 021, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    8. Lucía Mateos-Romero & María del Mar Salinas-Jiménez, 2018. "Labor Mismatches: Effects on Wages and on Job Satisfaction in 17 OECD Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(1), pages 369-391, November.
    9. Barbara Ermini & Luca Papi & Francesca Scaturro, 2017. "An Analysis of the Determinants of Over-Education Among Italian Ph.D Graduates," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(2), pages 167-207, July.
    10. Shujaat Farooq, 2015. "Job Mismatches in Pakistan: Is there Some Wage Penalty to Graduates?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(2), pages 147-164.
    11. Ana Isabel Moro-Egido, 2020. "Gender Differences in Skill Mismatches," Hacienda Pública Española / Review of Public Economics, IEF, vol. 235(4), pages 29-60, December.
    12. Amna Qadeer & Khadija Fatima, 2017. "Education-Job Mismatch among Graduates of Administrative Staff: A Case Study of University of Gujrat," Matrix Science Mathematic (MSMK), Zibeline International Publishing, vol. 1(1), pages 40-44, January.
    13. Qinglong Zhan & Guo Li & Wenjie Zhan, 2023. "Measurement of the coupling coordination relationship between the structures of secondary vocational school programs and industries in China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    14. Mariana Olga De Santis & María Cecilia Gáname & Pedro Esteban Moncarz, 2022. "The Impact of Overeducation on Wages of Recent Economic Sciences Graduates," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 409-445, August.
    15. Mariana Santis & Marcelo Florensa & María Cecilia Gáname & Pedro Esteban Moncarz, 2021. "Job Satisfaction of Recent University Graduates in Economics Sciences: The Role of the Match Between Formal Education and Job Requirements," Journal of Happiness Studies, Springer, vol. 22(7), pages 3157-3197, October.
    16. Barbara Ermini & Luca Papi & Francesca Scaturro, 2016. "Over-education among italian Ph.D. graduates. Does the crisis make a difference?," Mo.Fi.R. Working Papers 126, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    17. Hyung Rok Woo, 2020. "Perceived Overqualification and Job Crafting: The Curvilinear Moderation of Career Adaptability," Sustainability, MDPI, vol. 12(24), pages 1-17, December.
    18. repec:zbw:bofitp:2020_011 is not listed on IDEAS
    19. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2020. "Over-Qualification and the Dimensions of Job Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 591-620, January.
    20. Lucía Mateos Romero & María del Mar Salinas Jiménez, 2016. "El uso de las competencias en el puesto de trabajo: un análisis para el caso español con PIAAC," Investigaciones de Economía de la Educación volume 11, in: José Manuel Cordero Ferrera & Rosa Simancas Rodríguez (ed.), Investigaciones de Economía de la Educación 11, edition 1, volume 11, chapter 44, pages 795-822, Asociación de Economía de la Educación.
    21. Carmen Voces & Miguel Caínzos, 2021. "Overeducation as Status Inconsistency: Effects on Job Satisfaction, Subjective Well-Being and the Image of Social Stratification," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(3), pages 979-1010, February.
    22. Lucia Mateos & Ines Murillo & Maria del Mar Salinas, 2014. "Desajuste educativo y competencias cognitivas: efectos sobre los salarios," Hacienda Pública Española / Review of Public Economics, IEF, vol. 210(3), pages 85-108, September.
    23. Mariia Vasiakina & Silvana Robone, 2018. "Education-job mismatch as a determinant of health: evidence from the Russian Federation," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 72(4), pages 101-111, October-D.
    24. Dominik Buttler, 2022. "Employment Status and Well-Being Among Young Individuals. Why Do We Observe Cross-Country Differences?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 409-437, November.

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