The Consequences on Job Satisfaction of Job-Worker Educational and Skill Mismatches in the Spanish Labour Market: a Panel Analysis

The effects of job-worker mismatches on job satisfaction are examined using the eight waves (1994-2001) of Spanish data taken from the European Community Household Panel (ECHP). The impacts of both educational and skill mismatches are estimated considering unobserved heterogeneity, state dependence and attrition bias. Dynamic analysis shows that skill mismatches emerge as a much better predictor of job satisfaction than educational mismatches as the effects of the latter are related to unobserved heterogeneity among workers. Moreover, the current level of job satisfaction appears to be influenced by workers' previous job perceptions, suggesting a dynamic structure for job satisfaction.