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Informing policy and practice in Australia's training system

Work in Progress

The incidence and wage effects of overskilling among employed VET graduates

Summary

Item:
10419
Title:
The incidence and wage effects of overskilling among employed VET graduates
Type:
Managed research project
Project no:
NR07507
Status:
Finished
Date commenced:
14 May 2009
Contact:
Michelle Circelli
 
phone: 08 8230 8646
 
email: michelle.circelli@ncver.edu.au
Principal researcher: 
Kostas Mavromaras
 
National Institute of Labour Studies, Flinders University
Related program:
VET participation and labour market outcomes

Purpose

This project will investigate the degree of skill utilisation by those with VET qualifications once they have entered employment. It will use the first six waves of the HILDA survey to estimate the level of overskilling and mismatch at work for persons with different education levels.

Approach

Quantitative

Research questions

The research questions to be addressed by this project are:

  • Do employees holding trade certificates and apprenticeships have a higher / lower probability of being severely or moderately overskilled in their job relative to employees holding all other credentials as they are identified by the HILDA data?
  • To what extent does the severity of any overskilling wage penalty vary across these two groupings.
  • Do the patterns observed with respect to questions 1 and 2 vary by gender and broad industry.
  • The extent to which the probability of overskilling varies by vocational trade.
  • The extent to which the severity of the overskilling wage penalty varies across trade occupations.

Methodology

This project will use the first six waves of HILDA (2001-2006) and will consist of a comparative study of individuals holding apprenticeships and trade certificates, where such credentials represent their highest level of attainment, and employees holding all other credentials as they are identified by the HILDA data. Panel data methods and propensity score matching techniques will be applied appropriately.

Organisations

Located within the Faculty of Economics and Commerce at The University of Melbourne, The Melbourne Institute of Applied Economic and Social Research is a leading research organisation specialising in applied economic and social research with an international reputation for producing high quality research related to Australian policy issues. Its mission is to undertake world-class independent and impartial applied economic and social research and policy analysis on major issues relevant to Australia; provide highly valued products and services for business, government and community groups; and provide research training for emerging economic and social researchers.

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