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

14 Pages Posted: 14 Sep 2013

See all articles by Kostas Mavromaras

Kostas Mavromaras

Flinders University

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

Date Written: September 2013

Abstract

The interpretation of graduate mismatch manifested either as over‐education or as over‐skilling remains problematical. This article analyses the relationship of educational and skills mismatch with pay, job satisfaction and job mobility using unique data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. Over‐education and over‐skilling are found to be distinct phenomena and 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‐sectional results in the literature. The article shows that the relationship between mismatch and labour market outcomes is strongly influenced by unobserved heterogeneity.

Suggested Citation

Mavromaras, Kostas and McGuinness, Seamus and O'Leary, Nigel C. and Sloane, Peter J. and Wei, Zhang, Job Mismatches and Labour Market Outcomes: Panel Evidence on University Graduates (September 2013). Economic Record, Vol. 89, Issue 286, pp. 382-395, 2013, Available at SSRN: https://ssrn.com/abstract=2325731 or http://dx.doi.org/10.1111/1475-4932.12054

Kostas Mavromaras

Flinders University ( email )

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

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
Swansea, Wales SA2 8PP
United Kingdom

Peter J. Sloane

University of Wales, Swansea ( email )

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 ( email )

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

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