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The role of education pathways in the relationship between job mismatch, wages and job satisfaction: a panel estimation approach

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  • Kostas Mavromaras
  • Peter Sloane
  • Zhang Wei

Abstract

This paper examines the outcome of over-skilling and over-education on wages and job satisfaction of full-time employees in Australia between 2001 and 2008. We employ a random effects probit model with Mundlak corrections. We find differences by type of mismatch, education pathway, and gender. We categorise reported mismatches as genuine mismatches, weak mismatches, and no evidence of a mismatch. There is evidence of unobserved individual heterogeneity as in some cases wage and job satisfaction become insignificant using panel estimation as opposed to pooled ordinary least squares or probit analysis. Furthermore, genuine mismatch derives more from over-skilling than from over-education.

Suggested Citation

  • Kostas Mavromaras & Peter Sloane & Zhang Wei, 2012. "The role of education pathways in the relationship between job mismatch, wages and job satisfaction: a panel estimation approach," Education Economics, Taylor & Francis Journals, vol. 20(3), pages 303-321, February.
    • Handle: RePEc:taf:edecon:v:20:y:2012:i:3:p:303-321
    DOI: 10.1080/09645292.2012.672556
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    References listed on IDEAS

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    2. Marco Pecoraro, 2014. "Is There Still a Wage Penalty for Being Overeducated But Well-matched in Skills? A Panel Data Analysis of a Swiss Graduate Cohort," LABOUR, CEIS, vol. 28(3), pages 309-337, September.
    3. van Wetten, Sanne J.L. & Gerards, Ruud & de Grip, Andries, 2020. "Are graduates’ intrapreneurial skills optimally used for innovation?," Technovation, Elsevier, vol. 96.
    4. Theresa Geißler & Laszlo Goerke, 2023. "Educational Mismatch and Labour Market Institutions: The Role of Gender," Working Papers 2023.14, International Network for Economic Research - INFER.
    5. Redmond, Paul & Whelan, Adele, 2017. "Educational Attainment and Skill Utilization in the Irish Labour Market: An EU Comparison," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI).
    6. Le Wen & Sholeh A. Maani, 2019. "Job mismatches and career mobility," Applied Economics, Taylor & Francis Journals, vol. 51(10), pages 1010-1024, February.
    7. Sholeh A. Maani & Le Wen, 2021. "Over-education and immigrant earnings: a penalized quantile panel regression analysis," Applied Economics, Taylor & Francis Journals, vol. 53(24), pages 2771-2790, May.
    8. Andrew E. Clark & Akiko Kamesaka & Teruyuki Tamura, 2015. "Rising aspirations dampen satisfaction," Education Economics, Taylor & Francis Journals, vol. 23(5), pages 515-531, October.
    9. Kostas Mavromaras & St�phane Mahuteau & Peter Sloane & Zhang Wei, 2013. "The effect of overskilling dynamics on wages," Education Economics, Taylor & Francis Journals, vol. 21(3), pages 281-303, July.
    10. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
    11. P. Kler & G. Leeves & S. Shankar, 2015. "Nothing to Fear but Fear Itself: Perceptions of Job Security in Australia After the Global Financial Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(3), pages 753-769, September.
    12. Budría, Santiago & Martínez-de-Ibarreta, Carlos, 2021. "Education and skill mismatches among immigrants: The impact of host language proficiency," Economics of Education Review, Elsevier, vol. 84(C).
    13. McQuinn, Kieran & O'Toole, Conor & Economides, Philip & Monteiro, Teresa, 2017. "Quarterly Economic Commentary, Winter 2017," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC20174, march.
    14. Bender, Keith A. & Roche, Kristen, 2013. "Educational mismatch and self-employment," Economics of Education Review, Elsevier, vol. 34(C), pages 85-95.
    15. Sofie J. Cabus & Carla Haelermans, 2017. "Work or Schooling? On the Return to Gaining In-School Work Experiences," British Journal of Industrial Relations, London School of Economics, vol. 55(1), pages 34-57, March.
    16. Agata Maida & Cristina Tealdi, 2021. "Does Employment Protection Affect Qualification Mismatch?," British Journal of Industrial Relations, London School of Economics, vol. 59(3), pages 701-729, September.

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