Working Papers, Department of Economics, Lund University
Education-occupation mismatch: Is there an income penalty?
(), Inga Persson
() and Dan-Olof Rooth
Abstract: This paper adds to the small literature on the
consequences of education-occupation mismatches. It examines the income
penalty for field of education – occupation mismatches for men and women
with higher education in Sweden and reveals that the penalty for such
mismatches is large for both men and women. In fact, it is substantially
larger than has been found for the US. Controlling for cognitive ability
further establishes that the income penalty is not caused by a sorting by
ability, at least for Swedish men. The income penalty for men decreases
with work experience which is an indication that education-specific skills
and work experience are substitutes to some extent. There is no evidence,
though, that the mismatched individuals move to a matching occupation over
time. Thus, for some, the income penalty seems to be permanent.
Keywords: Human capital; rate of return; salary wage differentials; educational economics; (follow links to similar papers)
JEL-Codes: I21; J24; J31; (follow links to similar papers)
21 pages, February 6, 2009
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