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ISRN Economics
Volume 2014 (2014), Article ID 490914, 9 pages
http://dx.doi.org/10.1155/2014/490914
Research Article

How Persistent Is the Occupation-Education Mismatch in Canada?

Employment and Social Development Canada, 140 Promenade du Portage, Phase 4, Gatineau, QC, Canada K1A 0J9

Received 30 October 2013; Accepted 24 November 2013; Published 23 January 2014

Academic Editors: J. Le Gallo and R. Wright

Copyright © 2014 Xuyang Chen and Maxime Fougère. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper investigates the duration of overqualification in Canada, the time-varying probability of leaving overqualification, and the wage consequences associated with the transition. The paper also applies a survival analysis approach to examine the impact of key driving factors on the probability of transitioning from overqualification to a job match using a proportional hazard (Cox) model. The analysis shows that within a 5-year period, an overqualified worker has a 22 percent probability of transitioning to an occupation that matches the education level. The probability of transition also decreases quickly over time, thus lowering the chances of finding a job match after 12 months. Regression analyses also provide evidence that overqualified workers with short tenure are more likely to transition than workers with medium to long tenure. Finally, job-related training nearly doubles the chance of transitioning out of overqualification.