Job Mismatches and Labour Market Outcomes: Panel Evidence on Australian University Graduates

47 Pages Posted: 2 Aug 2010

See all articles by Kostas G. Mavromaras

Kostas G. Mavromaras

University of Melbourne - Melbourne Institute: Applied Economic & Social Research; IZA Institute of Labor Economics

Seamus McGuinness

Economic and Social Research Institute, Ireland

Nigel C. O'Leary

University of Wales, Swansea

Peter J. Sloane

University of Wales, Swansea; IZA Institute of Labor Economics

Zhang Wei

Flinders University

Abstract

The interpretation of graduate mismatch manifested either as overeducation or as overskilling remains problematical. This paper uses annual panel information on both educational and skills mismatches uniquely found in the HILDA survey to analyse the relationship of both mismatches with pay, job satisfaction and job mobility. We find that overeducation and overskilling are distinct phenomena with different labour market outcomes and that their combination results in the most severe negative labour market outcomes. Using panel methodology reduces strongly the size of many relevant coefficients, questioning previous cross-section results and suggesting the presence of considerable unobserved heterogeneity which varies by gender.

Keywords: overeducation, overskilling, wages, satisfaction, mobility

JEL Classification: J24, J31

Suggested Citation

Mavromaras, Kostas G. and McGuinness, Seamus and O'Leary, Nigel C. and Sloane, Peter J. and Wei, Zhang, Job Mismatches and Labour Market Outcomes: Panel Evidence on Australian University Graduates. IZA Discussion Paper No. 5083, Available at SSRN: https://ssrn.com/abstract=1651708 or http://dx.doi.org/10.2139/ssrn.1651708

Kostas G. Mavromaras (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Seamus McGuinness

Economic and Social Research Institute, Ireland ( email )

Dublin 4
Ireland

HOME PAGE: http://www.esri.ie/about_us/staff/view_all_staff/view/index.xml?id=1040

Nigel C. O'Leary

University of Wales, Swansea ( email )

Singleton Park
Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

Peter J. Sloane

University of Wales, Swansea ( email )

Singleton Park
Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Zhang Wei

Flinders University

GPO Box 2100
Adelaide S.A. 5001, SA 5063
Australia

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