Mismatch Between Education And Occupation In Pakistan
Author: Shujaat Farooq

In response to educational expansion, the research on job mismatch has been initiated in early 1970s in the US and later in other developed countries. In this study, an attempt has been made to fill the literature gap by examining the incidences of job mismatch and its monetary and non-monetary consequences in Pakistan. The study has divided the job mismatch into three categories; education-job mismatch, qualification mismatch and field of study and job mismatch. Both the primary (SEG, 2010) and secondary (LFS, 2006 & 2008) datasets have been used in which the formal sector employed graduates have been targeted. This study has found a number of imperfections in the educational and labour market system which in result are generating the job mismatch issues. The educational system is facing a variety of heterogeneities; whereas, the labour market is skewed towards the socio-political influences. The occupation titles and monthly wages reflect the deprived scenario as a reasonable percentage of the graduates, particularly the females are working in lower occupations and are getting the wage of unskilled labour. This study has measured the education-job mismatch by three approaches and both the datasets (LFS and SEG) show that about one-third of the graduates are facing education-job mismatch, either over-educated or under-educated. The SEG dataset shows that more than one-fourth of the graduates are mismatched in qualification, about half of them are over-qualified and the half are under-qualified. The analysis also shows that 11.3 percent of the graduates have irrelevant and 13.8 percent have slightly relevant jobs to their studied field of disciplines. The female graduates are facing more field of study and job mismatch. Our results suggest that the formal education may not be a good indicator to measure qualification. Our analysis shows that women are more likely than men to be over-educated, and age has a negative association with over-education. The graduates who belong to the political families have better education-job match and lower field of study and job match. The higher level of schooling prevents the graduates to be under-educated; however, it raises the likelihood of over-education and over-qualification. The occupation-specific field of disciplines offers more protection against the possibility of job mismatch. Both the full-time education and the semester system education reduce the job mismatch, while the distance learning education raises the job mismatch. The phenomenon of over-education and over-qualification is more in lower occupations. Similarly, more field of study and job mismatch is in lower occupations. The impact of job mismatch on earnings shows that over-educated and over-qualified graduates face wage penalties, while the under-qualified get wage premium. In similar, the graduates who have a poor field of study and job match also face wage penalties. Regarding the two non-monetary consequences of job mismatch, our analysis shows that the mismatched graduates are less satisfied with their current jobs and have high turnover intention as compared to the matched graduates. Our findings conclude that job mismatch represents an inefficient usage of human resources and welfare loss for the society. This research suggests that the two areas should be reformed which are human resource development and labour market institutions. This study has also highlighted some extra influential characteristics of job mismatch which have not been discussed in earlier studies. Supervisor: Dr. G. M. Arif Co-Supervisor: Dr. Abdul Qayyum

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Keywords : EDUCATION, Education And Occupation, Education-Pakistan, Job Mismatch, Job Mismatch and Qualification Mismatch, Mismatched Education, Pakistan
Supervisor: Ghulam Muhammad Arif
Cosupervisor: Abdul Qayyum

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