Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/80594 
Year of Publication: 
2013
Series/Report no.: 
IZA Discussion Papers No. 7440
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
There is a substantial literature on the scarring effects of unemployment on future employment prospects and a smaller one on the scarring effects of low pay, but the possibility that skills mismatch in the form of skills under-utilisation, may also have similar detrimental effects, has not previously been considered. This paper uses the first ten waves of the HILDA survey data to investigate the inter-related dynamics of unemployment, low pay and skills under-utilisation in Australia, focussing on differences by gender and educational pathways. It shows that skills under-utilisation also exhibits scarring effects, in addition to earlier evidence on wage penalties and reduced job satisfaction.
Subjects: 
education pathways
state dependence
dynamic estimation
job quality
JEL: 
J24
J31
I21
Document Type: 
Working Paper

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