Education Occupation Mismatch in Developing countries

Bilal Muhammad Khan

MPRA Paper from University Library of Munich, Germany

Abstract: This paper contributes to the literature highlighting the cost of education-occupation mismatch in the labor market. Most of the existing literature analyzing the education-occupation mismatch has been focused on the developed economies. Using the Skill Towards Employment and Productivity (STEP) data, this paper analyzes the loss in income as a result of the education-occupation mismatch in developing countries. The results suggest that vertically mismatched (over-educated as well as under-educated) workers earn significantly less than the "matched" workers, whereas there is no significant penalty for being a horizontally mismatched worker. This paper also found the over-educated and horizontally mismatched workers to be significantly less satisfied with their life as compared to the "matched".

Keywords: Education; wages; mismatch; Life satisfaction (search for similar items in EconPapers)
JEL-codes: J21 J24 J31 (search for similar items in EconPapers)
Date: 2019-02-15
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:92324

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