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The mismatch earnings penalty

Author

Listed:
  • Chiara Cavaglia
  • Lindsey Macmillan
  • Konstantina Maragkou
  • Richard Murphy
  • Gill Wyness

Abstract

We disentangle the relationship between student ability, course quality and the match between the two on earnings, estimating the first mismatch parameter in the literature. Using administrative data on all state-educated students in England linked to tax records, we show that high ability students attending low quality courses earn significantly less than their well-matched counterparts. By contrast, we find no evidence that lower ability students that overmatch to high quality courses go on to earn any less than well-matched students. This is evidence that affirmative action does not appear to have a detrimental effect on students' future earnings.

Suggested Citation

  • Chiara Cavaglia & Lindsey Macmillan & Konstantina Maragkou & Richard Murphy & Gill Wyness, 2024. "The mismatch earnings penalty," CVER Research Papers 041, Centre for Vocational Education Research.
    • Handle: RePEc:cep:cverdp:041
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    References listed on IDEAS

    as
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    6. Zachary Bleemer, 2022. "Affirmative Action, Mismatch, and Economic Mobility after California’s Proposition 209," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 137(1), pages 115-160.
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    Keywords

    mismatch; higher education; further education; returns;
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