Overeducation, earnings and job satisfaction among graduates in China

Jones, Melanie ORCID: https://orcid.org/0000-0002-0535-8090, Kaya, Ezgi ORCID: https://orcid.org/0000-0003-1909-2649 and Nan, Jiarui 2025. Overeducation, earnings and job satisfaction among graduates in China. China Economic Review 93 , 102448. 10.1016/j.chieco.2025.102448 Item availability restricted.

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Abstract

Using nationally representative longitudinal data from the China Family Panel Studies (2014-2020), this paper examines the relationship between overeducation, earnings and job satisfaction among graduates in China. We find consistent evidence of wage and job satisfaction penalties across multiple established measures of overeducation, even after accounting for personal and work-related characteristics. Although widely discussed in the literature, differences in academic subject and cognitive and non-cognitive skills account for only a modest part of the pay penalty. Controlling for time-invariant unobserved heterogeneity reduces the size of overeducation pay penalties and, in several cases, removes their statistical significance, suggesting the role of other forms of unobserved individual heterogeneity.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Elsevier
ISSN:	1043-951X
Date of First Compliant Deposit:	27 May 2025
Date of Acceptance:	24 May 2025
Last Modified:	12 Jun 2025 13:30
URI:	https://orca.cardiff.ac.uk/id/eprint/178541

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