Abstract
Several studies suggest that skill mismatch reduces job satisfaction. To date, research has primarily investigated the impact of subjective skill mismatch; the impact of objective skill mismatch has less commonly been analysed and has generally only focused on mismatches in single skills. The present study addresses the question of whether both subjective and objective skill mismatch reduces employee job satisfaction. This article contributes to previous research by disentangling the effects of objective and subjective skill mismatch on job satisfaction based on a multidimensional measure of objective skill mismatch among employees in Germany. Based on the 2018 wave of the German National Educational Panel Study (NEPS) Adult Cohort, multiple linear regression models are herein estimated in order to investigate how subjective and objective skill mismatches affect people’s job satisfaction. The findings indicate that subjectively skill mismatched employees are less satisfied with their job than matched employees to a statistically significant degree, even when controlling for the objective mismatch. However, objectively skill mismatched employees do not show statistically significant lower job satisfaction compared to matched employees. Although there is considerable dissonance between objective mismatches and the subjective perception of being mismatched, the findings suggest that skill mismatch only reduces job satisfaction when employees perceive themselves to be mismatched.
Highlights
Skill mismatch is a challenging issue in the labour market, affecting individuals, companies and societies (Bilan et al 2020; McGuinness et al 2018; Nikolov et al 2018); it is still gaining in importance given already existing and advancing megatrends such as technological innovation, globalisation, and demographic change (Comyn and StrietskaIlina 2019; International Labour Organization 2015; Pauceanu et al 2020)
This article contributes to previous research by disentangling the effects of objective and subjective skill mismatch on job satisfaction based on a multidimensional measure of objective skill mismatch among employees in Germany
Based on the 2018 wave of the German National Educational Panel Study (NEPS) Adult Cohort, multiple linear regression models are estimated in order to investigate how subjective and objective skill mismatches affect people’s job satisfaction
Summary
Skill mismatch is a challenging issue in the labour market, affecting individuals, companies and societies (Bilan et al 2020; McGuinness et al 2018; Nikolov et al 2018); it is still gaining in importance given already existing and advancing megatrends such as technological innovation, globalisation, and demographic change (Comyn and StrietskaIlina 2019; International Labour Organization 2015; Pauceanu et al 2020). Allen et al (2013) analyse the impact of objective skill mismatch in literacy and numeracy, using the first wave of PIAAC among 22 countries They show that being overskilled reduces job satisfaction, while being underskilled increases it. 2021, 10, 389 among 22 countries and focusing on male employees in full-time jobs, they show that only subjectively perceived skill mismatch (overskilled and underskilled) harms job satisfaction. This study analyses for the first time whether multidimensional objective skill mismatch is associated with employee job satisfaction In this context, the multidimensional skill mismatch measure may provide new evidence concerning whether the previously postulated results on the relationship between objective skill mismatch and job satisfaction are merely artefacts due to the one-dimensional measures that are only valid for individual skill domains. Skill mismatched (underskilled or overskilled) employees show less job satisfaction compared to objectively skill matched employees
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