Determinants of education-job vertical mismatch in urban Ghana

Abstract

The paper explores the determinants of education-job vertical mismatch in urban Ghana. It uses cross sectional data from the World Bank Skills Toward Employment and Productivity (STEP) surveys of working age urban population and applies the self-assessment method of measuring the incidence of education-job mismatch. The study employs the method of multinomial logit estimation technique to ascertain whether over and undereducated individuals possess a relatively worse bundle of skills than workers who are adequately matched to their jobs in terms of formal education. It identifies gender, marital status, education, skills, occupation and time-to-proficiency as significant determinants of mismatch. The study adduces evidence to the transient nature of mismatch as reflected in time-to-proficiency's negative relationship with overeducation and positive link with undereducation. Given the competitiveness of the national and global economic environment, the study provides some policy thoughts towards addressing challenges of skill mismatch.