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Wage effect of over-education and mismatch in Malaysia: a random effect approach

This paper explores the ffict of education mismatch and earnings outcome in Malaysia by taking both over-education and mismatch byfield of study into account Based on 2007 Malaysia Productivity Investment Climate Survey (etcs), it is found that around 18%o and 28%, ofworkers employed in jobs for w...

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Main Author: Zainizam Zakariya,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:http://journalarticle.ukm.my/8508/1/jeko_48%282%29-1.pdf
http://journalarticle.ukm.my/8508/
http://www.ukm.my/fep/jem/content/2014-2.html
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spelling my-ukm.journal.85082016-12-14T06:47:23Z http://journalarticle.ukm.my/8508/ Wage effect of over-education and mismatch in Malaysia: a random effect approach Zainizam Zakariya, This paper explores the ffict of education mismatch and earnings outcome in Malaysia by taking both over-education and mismatch byfield of study into account Based on 2007 Malaysia Productivity Investment Climate Survey (etcs), it is found that around 18%o and 28%, ofworkers employed in jobs for which they are over and under-educated, respectively. In terms of mismatch, about 52(% of workers are employed in jobs not corresponding to theirfield of study (1i% does not related and 35?(, no ipecificfield of study required). Close examination reveals that nearly twolhird of the overeducated are employed in jobs outside their ownfield of study. With respect to earnings outcomes, Random Effect (nz) models show that being overeducated and employed outside ownfield ofstudy resulted in earnings loss, betyveen 5 and 8o%for the former and 6 and l0%for the latter. Moreover, the wage penalty for being overeducated increases to roughly l40% to l7o% if working in jobs unrelated to theirfield of study. Greater earning loss may suggest that among the overeducated, they are heterogeneous of both schooling and workers. As such, the results imply that there are significant costs to selecting a major and then deciding to work in an occupation unrelated to the major since knowledge and skills acquired is not completely general and cannot simply be transferred to other occupations. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8508/1/jeko_48%282%29-1.pdf Zainizam Zakariya, (2014) Wage effect of over-education and mismatch in Malaysia: a random effect approach. Jurnal Ekonomi Malaysia, 48 (2). pp. 3-17. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2014-2.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description This paper explores the ffict of education mismatch and earnings outcome in Malaysia by taking both over-education and mismatch byfield of study into account Based on 2007 Malaysia Productivity Investment Climate Survey (etcs), it is found that around 18%o and 28%, ofworkers employed in jobs for which they are over and under-educated, respectively. In terms of mismatch, about 52(% of workers are employed in jobs not corresponding to theirfield of study (1i% does not related and 35?(, no ipecificfield of study required). Close examination reveals that nearly twolhird of the overeducated are employed in jobs outside their ownfield of study. With respect to earnings outcomes, Random Effect (nz) models show that being overeducated and employed outside ownfield ofstudy resulted in earnings loss, betyveen 5 and 8o%for the former and 6 and l0%for the latter. Moreover, the wage penalty for being overeducated increases to roughly l40% to l7o% if working in jobs unrelated to theirfield of study. Greater earning loss may suggest that among the overeducated, they are heterogeneous of both schooling and workers. As such, the results imply that there are significant costs to selecting a major and then deciding to work in an occupation unrelated to the major since knowledge and skills acquired is not completely general and cannot simply be transferred to other occupations.
format Article
author Zainizam Zakariya,
spellingShingle Zainizam Zakariya,
Wage effect of over-education and mismatch in Malaysia: a random effect approach
author_facet Zainizam Zakariya,
author_sort Zainizam Zakariya,
title Wage effect of over-education and mismatch in Malaysia: a random effect approach
title_short Wage effect of over-education and mismatch in Malaysia: a random effect approach
title_full Wage effect of over-education and mismatch in Malaysia: a random effect approach
title_fullStr Wage effect of over-education and mismatch in Malaysia: a random effect approach
title_full_unstemmed Wage effect of over-education and mismatch in Malaysia: a random effect approach
title_sort wage effect of over-education and mismatch in malaysia: a random effect approach
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2014
url http://journalarticle.ukm.my/8508/1/jeko_48%282%29-1.pdf
http://journalarticle.ukm.my/8508/
http://www.ukm.my/fep/jem/content/2014-2.html
_version_ 1643737486906621952
score 13.211869

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