How Persistent Is the Occupation-Education Mismatch in Canada?. (23rd January 2014)

• Record Type: Journal Article
• Authors: Chen, Xuyang; Fougère, Maxime
• Other Names: Le Gallo J. Academic Editor.; Wright R. Academic Editor.
• Is Part Of: ISRN economics. Volume 2014(2014)
• Publication Date: 2014-01-23
• Subjects: Economics -- Periodicals; Economics; Periodicals; 330
• DOI: 10.1155/2014/490914
• Languages: English
• ISSNs: 2090-8938

Abstract

Abstract : This paper investigates the duration of overqualification in Canada, the time-varying probability of leaving overqualification, and the wage consequences associated with the transition. The paper also applies a survival analysis approach to examine the impact of key driving factors on the probability of transitioning from overqualification to a job match using a proportional hazard (Cox) model. The analysis shows that within a 5-year period, an overqualified worker has a 22 percent probability of transitioning to an occupation that matches the education level. The probability of transition also decreases quickly over time, thus lowering the chances of finding a job match after 12 months. Regression analyses also provide evidence that overqualified workers with short tenure are more likely to transition than workers with medium to long tenure. Finally, job-related training nearly doubles the chance of transitioning out of overqualification.