Wage effects of educational mismatch and job search in Ghana and Kenya

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Abstract

Education is key to development strategies in Africa. We use overeducation and undereducation to analyse the effectiveness of education in preparing individuals for employment in Kenya and Ghana, using the Skills Towards Employment and Productivity Survey. Systematic differences in wages between matched, overeducated and undereducated workers hold across attainment levels, even controlling for cognitive skills. Overeducated workers are rewarded above exactly matched workers, partially supporting human capital theory. Undereducated workers are compensated over their education level, following the job competition model. Obtaining a job through social networks is widespread, but associated with lower wages for the overeducated and exactly matched.
Original languageEnglish
Pages (from-to)359-378
JournalEducation Economics
Volume29
Issue number4
Early online date18 Mar 2021
DOIs
Publication statusE-pub ahead of print - 18 Mar 2021

Bibliographical note

Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

  • Education quality
  • social networks
  • overeducation
  • undereducation

ASJC Scopus subject areas

  • Education
  • Economics and Econometrics

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