The Problem of Overskilling in Australia and Britain

44 Pages Posted: 26 Nov 2007

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

Yin King Fok

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

Date Written: November 2007

Abstract

This paper examines the parallel trends in education and labour market developments in Australia and Britain. It uses unique information in the WERS and HILDA surveys on reported overskilling in the workplace. To a degree, the overskilling information overcomes the problem of unobserved ability differences and focuses on the actual job - employee mismatch more than the conventional overeducation variables can. The paper finds that the prevalence of overskilling decreases with education at least for Australia, but the wage penalty associated with overskilling increases with education. Although the general patterns of overskilling (prevalence and penalties) are fairly similar between Australia and Britain, the problem appears to be greater in Britain.

Keywords: overskilling, overeducation, Australia, Britain

JEL Classification: J24, J31

Suggested Citation

Mavromaras, Kostas G. and McGuinness, Seamus and O'Leary, Nigel C. and Sloane, Peter J. and Fok, Yin King, The Problem of Overskilling in Australia and Britain (November 2007). IZA Discussion Paper No. 3136, Available at SSRN: https://ssrn.com/abstract=1032560 or http://dx.doi.org/10.2139/ssrn.1032560

Kostas G. Mavromaras

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 (Contact Author)

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

Yin King Fok

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

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

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
73
Abstract Views
1,188
Rank
642,366
PlumX Metrics