Patterns and Persistence of Educational Mismatch: A Trajectory Approach Using Chilean Panel Data

The misalignment between workers’ educational levels and the level typically required for their occupations, namely mismatch, has become widespread. However, despite its potential costs, there is little evidence of this situation in developing countries. Using longitudinal retrospective data employment histories 2009 2019, paper conducts sequence analysis to construct a typology mismatch trajectories among Chilean workers. We demonstrate that prevalent persistent phenomenon. Once people enter labor market, either as undereducated or overeducated workers, they tend stay such positions extended periods time. Moreover, we find significant wage penalties workers situation. Results indicate females young, less-educated men are more prone follow with longer unemployment. New avenues research need public policies looking at these phenomena avoid people’s dissatisfaction due possible false promise education can improve life standards.