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Wage effects of educational mismatch and job search in Ghana and Kenya

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  • Fiona Carmichael
  • Christian Darko
  • Shireen Kanji

Abstract

Education is key to development strategies in Africa. We use overeducation and undereducation to analyse the effectiveness of education in preparing individuals for employment in Kenya and Ghana, using the Skills Towards Employment and Productivity Survey. Systematic differences in wages between matched, overeducated and undereducated workers hold across attainment levels, even controlling for cognitive skills. Overeducated workers are rewarded above exactly matched workers, partially supporting human capital theory. Undereducated workers are compensated over their education level, following the job competition model. Obtaining a job through social networks is widespread, but associated with lower wages for the overeducated and exactly matched.

Suggested Citation

  • Fiona Carmichael & Christian Darko & Shireen Kanji, 2021. "Wage effects of educational mismatch and job search in Ghana and Kenya," Education Economics, Taylor & Francis Journals, vol. 29(4), pages 359-378, July.
    • Handle: RePEc:taf:edecon:v:29:y:2021:i:4:p:359-378
    DOI: 10.1080/09645292.2021.1900790
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    Cited by:

    1. Fiona Carmichael & Christian K. Darko & Nicholas Vasilakos, 2022. "Well‐being and employment of young people in Ethiopia, India, Peru and Vietnam: Is work enough?," Development Policy Review, Overseas Development Institute, vol. 40(2), March.
    2. Sam Jones & Ricardo Santos & Gimelgo Xirinda, 2024. "Employment Mismatches Drive Expectational Earnings Errors among Mozambican Graduates," The World Bank Economic Review, World Bank, vol. 38(1), pages 51-73.

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