The Impact of Education-Job Mismatches on Wages and Productivity: A Review, Essays (high school) of Computer science

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UMS L Canipus UNIVERSITI MALAYSIA SABAH Transforming Ideas into Reality FACULTY BUSINESS, ECONOMICS, AND ACCOUNTANCY UNIVERSITI MALAYSIA SABAH BH20103 HUMAN RESOURCE ECONOMICS SEMESTER 1 SESSION 2020/2021 GROUP ASSIGNMENTS LECTURER NAME: BORHAN ABDULLAH MEMBER LIST: No Name Matrix No. 1 | AYZAMAYDREKS BIN APAN BB20110573 2_| NURFATIN ABDULLAH BB20110174 3_ | NUR RAZAHLINAH BINTI AMIN BB20110345 4 | SAFRE NUR' FADZYELLA SIKUK BB20110757 5_ | MAS IDAYU BINTI JUNADI BB20110762 6 | SITINURAZELA BINTI BAINAN NAJAL BB20110657 TABLE OF CONTENTS 2.3 ‘Hensen 2004” The main objectives of this article is the role of geographic mobility affected to the graduates that working jobs far from their education level, having job that outside of their study field, working in part time or flexible jobs and jobs paid below the wage expected at the beginning of the career. There is relationship with the education job mismatch in Netherlands. The writer use method logit analyses to see what effect geographical mobility contributes in reducing education-job mismatches and also what could be causing the high connection between full-time or permanent jobs and geographical mobility. The data from this article are from the Netherlands' Research Centre for Education and the Labor Market that has been conducts two large-scale graduate surveys each year. Finding from this article show that geographical mobility has higher chance to get job at acquired education level. 2.4 ‘Vierira 2005’ The empirical research on the relationship between skill mismatches and work satisfaction is still in its early stages. The primary purpose of this article was to throw further light on this problem by utilising data from the European Community Household Panel. This research combines both qualitative and quantitative approaches. The findings show that, despite adjusting for a wide range of person and work-related factors, as well as unobserved variability, perceived over-qualification has a negative impact on overall job satisfaction. The same holds true for job satisfaction in terms of compensation, security, type of employment, and number of hours worked. The final unbalanced panel contains 23,409 observations gathered from 6520 individuals. Average age is 37 years, 58% are males and 66% are married or cohabiting. The research found that a worker may be ready to accept a salary drop to avoid over-qualification. 2.5 ‘Allen 2007’ This article objective is to clarify the relation between educational and skill mismatches. Thus, graduates who work below their level and/or outside their field employ less skills than those who work in ‘matching’ employment. By using the methods of feedback of reports from respondent, those who work outside of their profession level face more talent shortages than those who work inside their field. "Matching' jobs is a term used to describe jobs that are similar but not identical. Educational mismatches, on the other hand, do not imply mismatches between available and required knowledge and abilities. As a result, education-job match was best in countries where higher education was strongly geared to the labor market (Germany and the Netherlands), but the relationship between educational and job match was worst in countries where higher education was not strongly geared to the labor market. 3.0 VIEW ON THE ISSUE OF JOB MISMATCH 3.1 IMPACT ® Work Productivity Work productivity suffers as a result of job mismatch. Mismatches in education, qualifications, and abilities imply a loss of resources and employment opportunities. According to Quintini, an individual with a high degree of education working in a position with fewer educational needs will have a lower salary and less efficient use of resources (Quintini, 2011). Another scientific technique, based on individual productivity, focuses on the consequences of mismatches on job satisfaction, which determines work productivity. Employees with higher education or certification would benefit from a job that represents their knowledge and abilities. It might have a positive influence and increase job productivity. Job discontent is defined as overqualification and underutilization of skills (Green and Zhu, 2010). Educational mismatch and business productivity are linked. The authors (Mahy et al., 2013) found beneficial influences from excessive education and adverse effects from less education. Job mismatches may cause cognitive deterioration in the long run. Managing job mismatch necessitates improvements to ease young people's transition from education to employment. There is a paradox about the impact of job mismatch on work productivity. Employees with a high level of education in a firm may have a favourable influence and enhance production in the near term. Mismatched workers would suffer from decreased job satisfaction and poorer earnings in the long run. Furthermore, at the macroeconomic level, from the standpoint of the economy, job mismatches may have a detrimental impact on the economy and overall productivity’. ® Net Income * VELCIU. (2017). Job Mismatch-Effects on Work Productivity. https://seaopenresearch.eu/Journals/articles/SPAS_15_9.pdf 5 ¢ Limited Information People who are seek for a job has limited of information about the choices available. in this case, information about the workplace, qualifications or skill level are important because job-matching requires complete information of the scope of work and available skills. As a result, some workers in the labour market have been unable to find jobs that satisfy them. Apart from that, geographically constrained did not fit with their job which hard for them to move in the areas. Furthermore, they did not have much resource about the areas they will work and stay there especially that will qualified to them, they also need to adapt themselves in the new areas of the working so then they would enjoy and doesn’t have problem with the mismatch. Nonetheless, they need to get a job to survive especially those who have big family even though the job did not match with them. @ Lack of Job Experience Lack or none of experience about the job is also factor of the job mismatch. In this situation are more related to a worker especially fresh graduated who get job for the first time and the person who are too long not working. Due to this job mismatch with their education level, skills and other that related to the job requirement, they would face hard time to adapt themselves. This is also related to their interest in doing the job. Some of the employees did not match with the job, because they hard to adapt and lack of interest, they only do the work because getting forces to survive and be independent in responsibility arrange their lives. ® Overworking Despite of difference, this would make stress to the workers and will lead to other problems. Overworking indicate that employees work more hours than they need while underworking is employees work less hour than they need. Nonetheless, overworking get paying higher than the salary stated. This job has higher demand on workers and provide more opportunity to get better jobs. Meanwhile, underworking is frequently related to financial problems and does not always lead to improved career growth in the field. Both of this number of hours, workers didn’t have the change to work at time they prefer. 3.3 ANY RELATED ISSUES Education mismatch Education mismatch is the most studied field among other types of job mismatch because academic background as a signal is a salient indicator in and of itself, and it is assumed that academic background as a mediator variable represents practical contents of the signal and skills, knowledge, and types of capacity required for actual job performance. It has been proposed that in the case of educational mismatch, certain individuals may have low ability for their level of education compared to their peers and thus be unable to obtain a job commensurate with their educational level. Such individuals will be overeducated but not necessarily over skilled, and while their pay will suffer as a result, if they accept the limited nature of their ability, their job satisfaction may not suffer. Some people, on the other hand, may choose to accept a job for which they are overqualified because it provides compensating benefits, such as less stress or a shorter commute to work. Such individuals may be overeducated and over skilled in this case, but despite the pay penalty, their job satisfaction may be high and their proclivity to quite low. A third possibility is that employers prefer overeducated employees because they are more productive and learn faster, lowering training costs. In such cases, there may be little or no pay penalty, and the mismatch may be temporary if such employees are promoted relatively quickly. Furthermore, regression analysis reveals that only overeducation, alone or in combination with over skilling, increases the likelihood of quitting due to job mismatching. Male college graduates who are only over skilled are no more likely to quit than male college graduates who are well matched. When combined with the negative effects of mismatch on job satisfaction, this finding suggests that overeducated graduates, or those who are both overeducated and over skilled, are more likely to be trapped in jobs with undesirable characteristics. 4.0 RECOMMENDATION ® Match Education with Economic Needs My recommendation is to match education with economic need, which means that graduate students should consider their passion for a certain job route. You ought to understand what you like and what you're passionate about by going through a self- exploration process. Then hunt for a job option that matches your passions. You might discover that the educational qualifications are more concentrated and particular. When the workforce is more matched with job requirements, employees are able to pursue their passions and companies are able to obtain the competent people they seek. Furthermore, when you begin looking, be clear not only about the type of firm you want to work for, but also about your own profile and function within the company, because most recruiters are employed to locate candidates with certain knowledge, experience, and skill sets. So, if your resume clearly states your specialty and areas of interest, you have a good probability of being chosen for the position. Focusing on a near-perfect match between your qualifications and job requirements can not only speed up your job search but will also result in improved job satisfaction in the long run. @ Roles of Employer On the other hand, the employer's role is crucial in increasing employee productivity since workers who are cross-trained to perform a variety of activities are more productive. Employees who are offered a diverse set of abilities are more engaged and less likely to leave the organisation. Your employees will be more prepared for a variety of jobs if they are cross-trained. As a result, your workers aren't always striving to overcome new challenges. Cross-training and skill development for your employees is also beneficial to your business. When someone leaves the company, having personnel who can quickly transition to different tasks will help 10 5.0 CONCLUSION ¢ Due to the expansion of higher education, the number of young graduates entering the Malaysian labor market has risen dramatically. As a result, the number of people who are unemployed and working in low-paying positions in a gloomy work environment is rising and this pattern keeps increasing in terms of number each year. In other words, people are working occupations that are not appropriate for their degree of education, a condition known as overeducation. Despite sufficient labor supply, competition for skilled positions has increased due to a scarcity of such professions. Moreover, the fact that the economy has added over three million new employments over the last decade, the growth has been concentrated in low- and semi-skilled jobs. This paper provides a descriptive analysis on the extent of overeducation among graduates using the Job Analyst Method, which is one of the most common methods used to measure overeducation, and data from the Graduate Tracer Study (GTS) published by the Ministry of Education Malaysia from 2012 to 2017. It also shows that the percentage of overeducated graduates continues to rise, with the vast majority of them working as clerks and salespeople. Thus, it is crucial for all of us to take part in solving the issue of job mismatch in our country with the help of Malaysia NGOs and also the Malaysians citizen themselves such as the employee as well as the employer instead of just waiting for the government solely to make their own approach in addressing this issue. Last but not least, all of us hope that we can address this issue of job mismatch starting from now on so that young graduates that is full with amazing talent and passion for work being able to contribute to Malaysia’s GDP and driving the economic development further indirectly. 13 References 14