Educational mismatches versus skill mismatches: effects on wages, job satisfaction, and on-the-job search

J.P. Allen*, R.K.W. van der Velden

*Corresponding author for this work

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Education-job mismatches are reported to have serious effects on wages and other labour market outcomes. Such results are often cited in support of assignment theory, but can also be explained by institutional and human capital models. To test the assignment explanation, we examine the relation between educational mismatches and skill mismatches. In line with earlier research, educational mismatches affect wages strongly. Contrary to the assumptions of assignment theory, this effect is not explained by skill mismatches. Conversely, skill mismatches are much better predictors of job satisfaction and on-the-job search than are educational mismatches.
Original languageEnglish
Pages (from-to)434-452
JournalOxford Economic Papers-New Series
Issue number3
Publication statusPublished - 1 Jan 2001

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