Determinants of Education-Job Vertical Mismatch in Urban Ghana

This paper explores the determinants of education-job vertical mismatch in urban Ghana. It uses cross section data from the World Bank Skills toward Employment and Productivity (STEP) surveys of working age urban population and applies the self-Assessment method of measuring the incidence of education-job mismatch. The study employs the method of multinomial logit to ascertain whether over and undereducated individuals possess a relatively worse bundle of skills than workers who are adequately matched to their jobs in terms of formal education. It identifies gender, marital status, education, skills, occupation and time to proficiency as significant determinants of mismatch. The study adduce evidence to the transient nature of mismatch as reflected in time to proficiency’s negative relationship with overeducation and positive link with undereducation. Given the competitiveness of the national and global economic environment, the study provides some policy thoughts towards addressing challenges of skill mismatch.