Field-of-Study Mismatch and Skill Use: Mitigating Wage Penalties in Knowledge-Based Sectors

• In Event: Career and Technical Education Student Outcomes

Abstract

This study aims to investigate whether field-of-study mismatched workers experience a wage penalty and how the workplace skill utilization may alleviate that penalty in knowledge-based industries, where education alignment with job requirements serves as a strong signal of expertise. Using data from the Program of International Assessment of Adult Competencies (PIAAC), we found that field-of-study mismatch affects wage penalties in knowledge-based industries. Further, among the skill domains found significant (ICT, numeracy, and writing), utilizing ICT skills at work emerged as the strongest moderator to mitigate the mismatch-related wage penalty. The reading skill use was not a significant moderator. Our study provides practical recommendations for supporting mismatched workers in knowledge-based sectors through targeted informal learning and strategies.

Authors

• Seong Ji Jeong, Pennsylvania State University

• Mihee Park, Auburn University

• Xue Xing, University of Nevada - Las Vegas