Reasons for college major-job mismatch and subsequent job mobility and earnings growth

Abstract

This study examines the heterogeneity in job mobility and earnings growth among workers who were mismatched in their previous jobs due to different reasons. Mismatched is defined as working in jobs that are not related to the highest degree field. Using a panel dataset derived from the National Survey of College Graduates, I find that workers who were previously mismatched due to the unavailability of jobs in related fields (demand-mismatched) are more likely to make complex moves, i.e., changing both employer and job title, and experience higher earnings growth relative to their matched counterparts. The earnings growth among previously matched workers and workers who were mismatched due to other reasons, such as a change in career interests (supply-mismatched), is generally not significantly different. However, supply-mismatched workers encounter negative earnings growth after making simple moves, i.e., changing only employer. Further, heterogeneous earnings growth patterns are found among mismatched workers in different stages of career and between female and male mismatched workers.