UPSI Digital Repository (UDRep)
|Full Text :|
|This paper examines the incidence and the effect of overskilling on wages by taking individuals’ unobserved heterogeneity in ability using quantile regression (QR) method. Using data from the second Malaysia Productivity and Investment Climate Survey (PICS-2), the incidence of overskilling was reported around 31 percent - for which moderately overskilled accounted for 23 percent and severely overskilled accounted for 8 percent. Preliminary analysis revealed that overskilling was found to be heavily concentrated within low-ability segments of the workers’ conditional wage distributions. Using quantile regression (QR) method, the results revealed that although being overskilled resulted in wage penalty, the penalty, however, was heterogeneous across the entire workers’ conditional wages distribution. Indeed, the penalty for moderately overskilled was greater at the lower deciles and became smaller or even disappears as one moved up the wages distribution. This may be consistent with the view that the overskilled workers are likely amongst the lowability workers. By contrast, the penalty for severely overskilled, in particular women was evident all the way through the conditional wage distribution. This perhaps suggests that unobserved heterogeneity unable to explain the wages penalty for mismatched women. Nevertheless, this study may suggest the importance of including explicit controls for individuals’ unobserved ability where possible, as a mean to avoid bias estimation of the wage impacts of the overskilling.|
1. Allen, J., & Velder, R. van der. 2001. Educational mismatches versus skill mismatches: effects on wages, job satisfaction, and on-the-job search. Oxford Economic Papers 53(3):434–452.https://doi.org/10.1093/oep/53.3.434 2. Amin, S. 2004. Ethnic differences and married women’s employment in Malaysia: do government policies matter? The Journal of Socio-Economics 33(3): 291–306. https:// doi.org/10.1016/j.socec.2003.12.023 3. Amin, S., & DaVanzo, J. 2004. The impact of wives’ earnings on earnings inequality among married-couple households in Malaysia. Journal of Asian Economics 15(1) : 49-70. https://doi.org/10.1016/j.asieco.2003.12.002 4. Aminah Ahmad. 2009. Gender Differences and Trends in the Participation of Malaysians in Education : Implications on Employment Outcomes. The Journal of International Management Studies 4(2): 65-74. 5. Bauer, T. K. 2002. Educational mismatch and wages : A panel analysis 19: 221-229. 6. Becker, S. O., & Ichino, A. 2002. Estimation of average treatment effects based on propensity scores. The Stata Journal 2(4): 358-377. article. 7. Budría, S., & Moro-Egido, A. I. 2008. Education, educational mismatch, and wage inequality: Evidence for Spain. Economics of Education Review 27(3): 332-341. https://doi.org/10.1016/j.econedurev.2006.10.005 8. Chevalier, A., & Lindley, J. 2009. Overeducation and the skills of UK graduates. Journal of the Royal Statistical Society:Series A (Statistics in Society) 172(2): 307-337. https://doi.org/10.1111/j.1467-985X.2008.00578.x 9. Dolton, P., & Silles, M. 2001. Over-Education in the Graduate Labour Market: Some Evidence from Alumni Data, (June). 10. Green, F., & McIntosh, S. 2007. Is there a genuine underutilization of skills amongst the over-qualified? Applied Economics 39(4): 427-439.https://doi.org/10.1080/ 00036840500427700 11. Hartog, J. 2000. Over-education and earnings: Where are we, where should we go? Economics of Education Review 19(2):131-147. https://doi.org/10.1016/S0272-7757 (99)00050-3 12. Hartog, J., Pereira, P. T., & Vieira, J. a. C. 2001. Changing returns to education in Portugal during the 1980s and early 1990s: OLS and quantile regression estimators. Applied Economics 33(8):1021-1037. https://doi.org/10.1080/ 000368401300182798 13. Ismail, R. 2011. Gender wage differentials in the Malaysian services sector. African Journal of Business Management 5(19) : 7781–7789. https://doi.org/10.5897/AJBM10.047 14. Ismail, R., & Noor, Z. 2005. Gender wage differentials in the Malaysian manufacturing sector. International Journal of Economics and Management 2(2): 119-137. Retrieved fromhttp://journals.iium.edu.my/enmjournal/index.php/ enmj/article/view/110 15. Koenker, R. 2004. Quantile regression for longitudinal data. Journal of Multivariate Analysis 91(1): 74-89. article. 16. Koenker, R., & Bassett Jr, G. 1978. Regression quantiles. Econometrica: Journal of the Econometric Society, 33-50. article. 17. Korpi, T., & Tåhlin, M. 2009. Educational mismatch, wages, and wage growth: Overeducation in Sweden, 1974- 2000. Labour Economics 16(2): 183-193. https://doi. org/10.1016/j.labeco.2008.08.004 18. Lim, H. 2011. The determinants of individual unemployment duration: the case of Malaysian graduates. Journal of Global Management 2(1): 184-203. Retrieved from http://www.globalresearch.com.my/journal/management_ v02n01n02/JoGM_July2011_V2N2.pdf#page=66 19. Lim, H. 2013. Overeducation and happiness in the Malaysian graduate labour market. International Journal of Business & Society 14(1): 93-110. Retrieved from http://scholar. google.com/scholar?hl=en&btnG=Search&q=intitle:OV EREDUCATION+AND+HAPPINESS+IN+THE+in+the+ma laysian+graduate+labour+market#0 20. Martins, P. S., & Pereira, P. T. 2004. Does education reduce wage inequality? Quantile regression evidence from 16 countries. Labour Economics 11(3): 355-371. https://doi. org/10.1016/j.labeco.2003.05.003 21. Mavromaras, K., Mcguinness, S., & Fok, Y. K. 2009. The incidence and wage effects of overskilling among employed VET graduates. NCVER Monograph Series 03/2009. National Centre for Vocational Education Research Ltd. PO Box 8288, Stational Arcade, Adelaide, SA 5000, Australia. 22. Mavromaras, K., Mcguinness, S., O’Leary, N., Sloane, P., & Fok, Y. K. 2010. the Problem of Overskilling in Australia and Britain. The Manchester School 78(3): 219-241.https://doi.org/10.1111/j.1467-9957.2009.02136.x 23. McGuinness, S. 2006. Overeducation in the labour market.Journal of Economic Surveys 20(3): 387-418. 24. McGuinness, S., & Bennett, J. 2007. Overeducation in the graduate labor market: A quantile regression approach.Economics of Education Review 26(1): 521-531. 25. McGuinness, S., & Bennett, J. 2007. Overeducation in the graduate labour market: A quantile regression approach.Economics of Education Review 26(5): 521-531. https://doi.org/10.1016/j.econedurev.2005.12.003 26. McGuinness, S., & Sloane, P. J. 2011. Labour market mismatch among UK graduates: An analysis using REFLEX data.Economics of Education Review 30(1): 130-145. https://doi.org/10.1016/j.econedurev.2010.07.006 27. World Bank. 2009. World Bank. 2009. Malaysia productivity and investment climate assessment update. No. 49137-MY. Washington, DC. 28. Zakariya, Z. 2014. The Effects of Over, Required and UnderEducation on Earnings in Manufacturing Sector in Malaysia. International Journal of Management Studies 21(1): 83-109. 29. Zakariya, Z. 2014b. Wage effect of over-education and mismatch in Malaysia: a random effect approach. Jurnal Ekonomi Malaysia 48(2): 3-17. http://journalarticle.ukm. my/8508/ 30. Zakariya, Z., & Battu, H. 2013. The effects of overeducation on multiple job satisfaction towards enhancing individuals ‘ well-being in Malaysia. Business and Management Quarterly Review 4: 38-51. 31. Zakariya, Z., & Mohd. Noor, M. A. 2014. Workplace characteristics and determinants of over-education and overskilling in the manufacturing sector in Malaysia. Jurnal Pengurusan 40: 125-136. 32. Zulkifly, O., Ishak, Y., & Abu Hassan, M. S. 2010. Inflasi pendidikan mengikut ketentuan dalam pasaran buruh Malaysia. Jurnal Ekonomi Malaysia 44(1): 61-71.
|This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials.|
You may use the digitized material for private study, scholarship, or research.