Abstract
This paper studies the causes and effects of educational mismatch in the Ecuadorian labor market according to the microdata of the employment survey from 2007 to 2012 that implements a discrete choice model and human capital. The article is the first study on the exploration of this phenomenon in the Ecuadorian labor market, which also makes a temporal analysis of the phenomenon, to verify its structural nature. The educational maladjustment in the Ecuadorian labor market covers 35% of the labor mass where over-education is the majority with 22% and under-education with 13%. There is a positive return for years of over-education and a penalty on wages in the case of under-education. The results show that the mismatch decreases as the size of the company and the individual's experience increases. These conclusions would show that the initiatives of the labor observatories for graduates are a first step to know the needs of the companies and the competences that develop the graduates.
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