Sholeh Maani, University of Auckland - Educational job mismatch and job satisfaction

Title: Educational job mismatch and job satisfaction: A dynamic analysis for women and men

Abstract: This paper focuses on the impact of educational mismatch on job satisfaction, with special reference to gender differences in job mismatch and its outcomes. Educational job mismatch occurs when a worker’s education does not match the education level required to perform the job. A growing literature shows that while over-educated workers receive wages that are higher than their co-workers with less education, they receive a wage penalty compared to workers who have the same years of education as them but are in matched occupations. A question of interest is whether over-education reflects optimum compensating choice outcomes or if it is a sub-optimum result from the point of view of the employees. Job satisfaction is an important indicator which sheds light on this question. Employing HILDA data for years 2001-2019, and dynamic analyses, we find a proportionally lower wage return to attained years of education for women, and wage penalties for over-educated men and women. The dynamic job satisfaction models further confirm that the average worker who is over-educated has a significantly lower level of job satisfaction than a well- matched worker who has the same number of years of education but who works in a position matched to his/her level of education in a higher-level occupation. This effect is more pronounced for women. The findings advocate that policy instruments should be designed to facilitate workers’ education and job match to increase job satisfaction.

Presenter: Sholeh Maani, University of Auckland

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