Education-occupation mismatch: Is there an income penalty?

Research output: Contribution to journalArticle

Abstract

This paper adds to the sparse 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 degrees in Sweden and reveals that the penalty for such mismatches is large for both men and women. For mismatched men the income penalty is about twice as large as that found for US men, whereas for women the penalty is of about the same size as for US women. 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.

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Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economic History
  • Economics

Keywords

  • Salary wage differentials, Educational economics, Rate of return, Human capital
Original languageEnglish
Pages (from-to)1047-1059
JournalEconomics of Education Review
Volume29
Issue number6
Publication statusPublished - 2010
Publication categoryResearch
Peer-reviewedYes