The Impact of Education-Occupation Mismatches on Wages in Mexico

Higher levels of educational have been shown to increases an individual’s earnings, but these impacts may be less apparent when an education-occupation match fails to occur. Previous studies show education-occupation mismatches to impact earnings, productivity and migration. We analyze the impact of education-occupation matching on earnings in Mexico from 2012 to 2017. The returns from an additional year of schooling are higher when one secures employment in an occupation that requires the additional education. We also extend our analysis to women whom earn less than their male counterparts, however observe higher returns from additional schooling