Education-occupation Mismatch as a Factor in the Dynamics of Individual Incomes

This study investigates how correspondence of education specialization to job profile affects individual incomes. Different occupations demand different qualifications and education-specific skills. This work focuses on income reward for education-occupation match for different professional groups. Another goal of this work is to find how such reward is differentiated between different time periods. The main data resource for this study is Russian Longitudinal Monitoring Survey - HSE (RLMS-HSE) which contains information about men and women aged 18 to 65 who live in Russia who received a vocational or higher education. Education-occupation match was constructed on the basis of the occupational codification ISCO-08. As a method of data analysis in this study will be used panel data econometric analysis. After testing for fixed or random effects, the fixed effects model was chosen. Main results of this work are that workers with education-occupation match has income fee comparing to workers who do not have such match, elder workers with education occupation match have bigger salary than young workers. Еhe time effect is quite strong as well.