Tailoring education policy to deliver the skills needed by modern labour markets is complicated by the rapid pace of technological change. These complications are amplified when the associated risks of technological redundancy and the lengthening working lifetimes are taken into account. At the heart of the challenge for policy-makers is…

We use a random-effects dynamic probit model to estimate the effect of overskilling dynamics on wages. We find that overskilling mismatch is common and more likely among those who have been overskilled in the past. It is also highly persistent, in a manner that is inversely related to educational level. Yet, the wages of university graduates are…

After a period of relative neglect in many countries, apprenticeships and other forms of work-based learning are experiencing a revival. Their effectiveness in easing school-to-work transitions and serving the economy is increasingly recognised. However, engaging individuals, employers, social partners and education and training systems in such…

It is well established that workers with more years of education earn higher wages. By establishing a reference or "required" level of education for a worker's occupation, it is possible to decompose an individual's actual level of education into years of required education and years of over-education or under-education relative to that…

This study investigates the incidence of over-education amongst recent Australian bachelor degree graduates and its effect on their earnings. We find that between 24% and 37% of graduates were over-educated shortly after course completion, with over-education most common amongst young females and least common amongst older females. Over-education…

The purpose of this study is to examine the effects of university and vocational education, and other influences on a variety of labour market outcomes for Australian youths aged between 16 and 25. The six labour market outcomes investigated are: occupational status, hourly and weekly earnings, employment, unemployment and full-time work. The…

Overskilling is the phenomenon whereby a worker's skills are underutilised in his or her job. Overskilled workers are employed, but they are underutilised and mismatched, in that their skills and abilities are not a good match with the requirements of the job. Overskilling can lead to decreased wages and job satisfaction, which suggests that the…

In the wake of the technological revolution that began in the last decades of the 20th century, labour market demand for information-processing and other high-level cognitive and interpersonal skills is growing substantially. The "Survey of Adult Skills," a product of the OECD Programme for the International Assessment of Adult…

Data show that educated workers earn higher wages and are unemployed less often. Some researchers believe that education improves a worker's productivity (or "human capital"), making them more desirable on the job market, while others believe that it improves a worker's network (or "social capital"), giving them more…

The nature of apprenticeships is changing. Increasing proportions of adult apprentices are prompting demand for various alternative pathways to completion. One option for an alternative pathway to accelerate completion is the use of recognition of prior learning (RPL) to identify existing skills and knowledge in combination with gap training. This…

As part of the drive to lift Australia's productivity, there has been a push for an increase in the number of course completions in both the vocational education and training (VET) and higher education sectors. While it is generally assumed that completing a course is the desired outcome, it is also expected that individuals will acquire skills…

Completion rates are an obvious performance indicator for the vocational education and training (VET) sector. Previously published figures indicated overall completion rates as low as 27%. One response to this is the argument that there are many students who do not need to complete their qualification as they acquire the skills they need without…

This paper examines the outcome of over-skilling and over-education on wages and job satisfaction of full-time employees in Australia between 2001 and 2008. We employ a random effects probit model with Mundlak corrections. We find differences by type of mismatch, education pathway, and gender. We categorise reported mismatches as genuine…

This paper was a keynote address at the Australian Vocational Education and Training Research Association (AVETRA) conference held in Canberra in April 2012. The author notes that industry is arguably the key stakeholder in the Australian vocational education and training (VET) sector, but is not a single actor nor a disinterested consumer of…

This paper employs conditional second moments to identify the impact of education in wage regressions where education is treated as endogenous. This approach avoids the use of instrumental variables in a setting where instruments are frequently not available. We employ this methodology to estimate the returns to schooling for a sample of…