This paper focuses on education and skills mismatch amongst Italian graduates. Indicators for over and under-utilisation of education and under-utilisation of skills are included in a grouped data lognormal wage equation, allowing one to test a number of theories, which could explain the effect of over-schooling on wages. Little evidence is found to support assignment theory and also identify a relatively weak wage effect arising from educational mismatch associated with the formal requirements of a job, when compared to that associated with an employee's perception of the job requirements.
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