The mismatch earnings penalty

Chiara Cavaglia (), Lindsey Macmillan (), Konstantina Maragkou (), Richard Murphy () and Gill Wyness ()
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Chiara Cavaglia: Centre for Vocational Education Research, London School of Economics
Lindsey Macmillan: UCL Centre for Education Policy & Equalising Opportunities
Konstantina Maragkou: Faculty of Education, University of Cambridge
Richard Murphy: Department of Economics, University of Texas at Austin
Gill Wyness: UCL Centre for Education Policy & Equalising Opportunities

No 24-09, CEPEO Working Paper Series from UCL Centre for Education Policy and Equalising Opportunities

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.

Keywords: mismatch; higher education; further education; returns (search for similar items in EconPapers)
JEL-codes: I20 I24 I28 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2024-11, Revised 2024-11
New Economics Papers: this item is included in nep-edu
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