Abstract:
This study estimates the monetary and non-monetary implications of the three types
of education-job mismatches which are: (i) qualification mismatch, (ii) skill mismatch and
(iii) field of study mismatch. For the monetary consequences, penalties and premium
resulting due to prevalence of mismatches have been estimated in line with the Mincerian
Earnings Function using Ordinary Least Square estimation. For analyzing non-monetary
consequences, effects of education-mismatches on workers’ job satisfaction and turnover
intention have been estimated using the Ordered Logistic Regression Model. Graduate
workers of Lahore were the target population and data was collected using a detailed
multi-dimensional questionnaire. Estimates show that non-matched graduates are in fact
facing monetary and non-monetary consequences in comparison to the matched graduates.
This research provides clear evidence of the dilemma of mismatch where not being the
right fit for a job has serious consequences for the workers. Policy implications have been
provided in the light of the current scenario of the country in order to minimize and address
the incidence of mismatches amongst the graduate workers in the country.
