Dilemma of Education and Job Mismatch: The Case of Urban Pakistan

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.