Surveying the Extent and Wage Consequences of Education-Job Mismatches in the Philippine Labor Market

Melchor, Monica M. Author_Email:

Philippine Journal of Development, 2022

Abstract: Recognizing the need to analyze the education-skills gap in the developing economy context, this paper estimates the extent of education-employment mismatches and the resulting wage consequences in the Philippine labor market. It finds that 39 percent of employed individuals are overeducated while over a quarter are undereducated. Meanwhile, overeducated individuals earn only 5 percent more for a surplus year of schooling, relative to required years of schooling, which have returns of 7 percent to 19 percent. It underlines the importance of labor market policies for improved job-skills matching, for instance, through the reduction of information asymmetries. Public subsidies for higher education must also be premised on improved wage prospects or higher productivity for employed individuals.

Keywords: Philippine Labor Market; education-labor mismatches; overeducation (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:phd:pjdevt:pjd_2022_vol__46_no__1d

DOI: 10.62986/pjd2022.46.1d

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