Research

Working papers

Skill mismatch and labour market outcomes: a welfare perspective

with Pilar Beneito
First chapter of my PhD thesis · work in progress

Abstract. We investigate the causal effects of skill mismatch on job satisfaction across OECD countries, using a control function approach to address the endogeneity of mismatch. We find a marked asymmetry: underskilling tends to increase satisfaction, while overskilling consistently reduces it. These effects are robust to controlling for wages, suggesting that the mismatch–satisfaction channel operates independently of pay. The dissatisfaction penalty from overskilling appears to be larger among low-educated workers. Overall, skill mismatch has meaningful consequences for worker well-being, with implications for education, training and labour market policy.