Publication: Employment Mismatches Drive Expectational Earnings Errors among Mozambican Graduates
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Date
2023-07-27
ISSN
0258-6770 (print)
1564-698X (online)
1564-698X (online)
Published
2023-07-27
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Abstract
Biased beliefs about future labor-market earnings are commonplace. Based on a longitudinal survey of graduate work transitions in Mozambique, this study assesses the contribution of employment mismatches to a large positive gap between expected (ex-ante) and realized (ex post) earnings. Accounting for the simultaneous determination of pecuniary and non-pecuniary work characteristics, employment mismatches are found to be material and associated with large earnings penalties. A decomposition of these expectational errors shows that around two-thirds are attributable to employment mismatches, suggesting job seekers systematically overestimate the ease of securing good jobs.
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“Jones, Sam; Santos, Ricardo; Xirinda, Gimelgo. 2023. Employment Mismatches Drive Expectational Earnings Errors among Mozambican Graduates. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/41350 License: CC BY-NC-ND 3.0 IGO.”
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