Republic of the Philippines

Department of Education
Region III, Central Luzon
Division of Nueva Ecija
ESSENTIAL SCHOOL
Brgy. Palomaria, Bongabon Nueva Ecija

Job Mismatch

This thesis is presented in practical fulfillment of the

requirements for the practical research 2

S.Y. 2017-2018

Jellaine Rigat

Lyka Pasuquin

Fatima Tolosa

Ivy Jasinto

Rayyan Isleta

Joshua Arches

John Paul Camania

Michael Angelo De Guzman

 Essential School
Bongabon, Nueva Ecija

ABSTRACT

Labor or job mismatch and labor productivity: Evidence from PIAAC data.

This paper explores the link between skill and qualification mismatch
and labor productivity using cross -country industry data for 19 OECD
countries. Utilizing mismatch indicators aggregated from micro-data sourced
from the recent OECD Survey of Adult Skills (PIAAC), the main results
suggest that higher skill and qualification mismatch is associated with
lower labor productivity, with over-skilling and under-qualification
accounting for most of these impacts. A novel result is that higher skill
mismatch is associated with lower labor productivity through a less
efficient allocation of resources, presumably because when the share of
over-skilled workers is higher, more productive firms find it more difficult
to attract skilled labor and gain market shares at the expense of less
productive firms. At the same time, a higher share of under-qualified
workers is associated with both lower allocate efficiency and within-firm
productivity – i.e. a lower ratio of high productivity to low productivity
firms. While differences in managerial quality can potentially account for
the relationship between mismatch and within-firm productivity, the paper
offers some preliminary insights into the policy factors that might explain
the link between skill mismatch and resource allocation.
 CHAPTER I

Introduction
This study is about job mismatch. Job mismatch is defined
as the gap between an individual’s job skills and the demands
of the job market; it has become a central challenge for the
Philippines, affecting all the layers of the society, from the
productivity and efficiency of business to the current and
prospective welfare of youth.
The Department of Labor and Employment of the Philippines
commits to what seems to be a never-ending cause of providing
enough decent jobs for Filipino citizen. It may be pleasing to
hear that more than a hundred thousand jobs are available to
date, yet it cannot be denied that numbers are still growing
in terms of both unemployment and underemployment. Job mismatch
cases in the Philippines is so common among today’s workforce,
hence more and more employees become restless and frustrated
with their current jobs and career paths.
Here are some of the top reasons, as observed by most career
experts, why the job mismatch issue remains controversial to
this very day: Wrong choice of college course – either strong
parental influence in decision-making, or taking a course
pertaining to a job that is “in” (not because the interest is
there). Being too money-driven – Applying for jobs that offer
above-average compensation packages, like those based abroad,
despite not possessing the necessary skills. Being too choosy
– unreasonable conditions or demands set by jobseekers when
looking for or applying to jobs. The overqualified stigma –
work experiences are beyond employer’s requirements for the
job applied for – a situation that is not new to employees who
wish to switch careers or lower their standards just to avoid
unemployment. Cost-cutting measures of companies for relevant
training programs – Not all employers allot the required time
or budget for training new hires, who are therefore expected
to be fast-learners as they go completely hands on as early as
day one
Using connections in the workplace – There are applicants
and employees who consider their relationship with a top-rank
person in the organization as an assurance of securing jobs,
while those who are more deserving end up unemployed or victims
of career mismatches themselves
In the Philippines, there are people who are experiencing a
job mismatch, the reason behind this is the lack of job openings
for their course so they ended up choosing other jobs that is
available or valid for them.
Statement of the Problem
Many of us today are experiencing job mismatch. In this
case, their job that they are in is not aligned to the course
that they took in college or whatever their educational
attainment is.

1. What is the profile of the respondents in terms of the

following:

1.1 Age;
1.2 Gender;
1.3 Educational attainment;

2. What are the causes of job mismatch:

2.1 Social and environmental aspects

2.2 Financial Aspects
2.3 Unemployment

Scopes and Delimitation

This research was conducted within the area of NE Pacific
mall, Cabanatuan City, Nueva Ecija. There are a total of 100
random respondents which are the managers or employees of their
establishments. These people are chosen because they have
experience in terms of job mismatch. This research focuses on
knowing the percentage of the people who are experiencing job
mismatch.
Significance of the Study
This present study provides versatility and usefulness
for the community to become socially aware of the job mismatch
in different establishments. This thesis intends to inform
people on these cases.
To the students, this study will give them awareness and
knowledge about job mismatch, they will have more insight
To the parents, as the guardian of the students, they must
guide their children to make the right choices to avoid job
mismatch.

Hypothesis
The proposed result of the research about job mismatch
from the respondents will be a great contribute to the
community. Primarily, this study has the following hypothesis.
It is evident that a lot of employed individuals had their
job in contrast with their selected course. The result of the
research will not just be a great contribute to community, it
can also be beneficial and convenient among other researcher
who will conduct this type of research.
Definition of terms
 Education- refers to the field of study taken by the
college graduates.
 Occupation- refers to the primary occupations provided by
the National Statistics Office’s (NSO) regularly
conducted Labor Force Survey’s(LFS) October 2011 (4th
Quarter of 2011) public user file with wage data.
 Mismatch- refers to the situation when education (field
of study taken by college graduates) do not match with
his/her occupation taken after graduation.
 Matched- refers to the situation when an individual’s
occupation is in line with his/her field of study.
 Unmatched- refers to the situation when an individual’s
occupation is not in line with his/her field of study.

Conceptual Frame work of the Study

To attain the direction and goal of this study, the

researchers employed the input-process-output system as shown
in the research paradigm.

The questionnaire was administered to student-

respondents. The items in the questionnaires are based in the
situations that the managers and employees face and the
different factors to consider.

These factors were considered to every persons who are

experiencing job mismatch, thus, the ongoing job mismatch
problem depends on the individuals themselves, and on how to
minimize those negative effects.
 Input Output

Factors to
consider for
job mismatch: Job mismatch

1. Age S.Y. 2016-2017

2. Educational
attainment

Process

Questionnaires Interview

Statistical tools and

treatment

Frequency Count

Percentage (%) = (F/n) x

100

Where:

F = frequency

N = Total number of the

respondents

Weight Mean Formula

WM = Weighted Frequency

TWM = Total Weighted mean

Average

Weighted mean
(AWM)

TWFS = Total weighted

frequency score

N = Total no. of
respondents

N = Population

n = Desired Sample Size

P = population in the
target
 CHAPTER II

REVIEW OF RELATED LITERATURE

Foreign
Research on education-job mismatch has been carried out
from diverse points of views. The term education-job mismatch
has been used interchangeably in the literature with other
terms such as over-education, underutilization of skills,
under-education, skill mismatch, over qualification, and
underemployment. According to Farooq (2011), education-job
mismatch compares the acquired education by a worker with that
required by his/her current job. Mahuteau et al. (2014) define
education-job mismatch as a situation where the qualification
of an employee does not match the qualification of the job
he/she does. Graham and Graham (2013) define it as a situation
where a worker is in a job that does not correspond with his/her
level of education, experience, skills or interests and
suggested that such a mismatch results from the interaction
between a combination of people’s needs, values and
expectations on the one hand, and characteristics and rewards
associated with their jobs on the other hand. From Beti et al.
(2007) point of view, education-job mismatch refers to a lack
of coherence between the required and the offered level of
education for a job. There are two types of education-job
mismatch: vertical mismatch and horizontal mismatch (European
Centre for the Development of Vocational Training (Cedefop)
2010, Kim et al. 2011). Vertical mismatch refers to the
mismatch between level of education and the job. Vertical
mismatch can occur either as over-education or as under-
education. Over-education occurs when an individual is
recruited for a job that requires a lower level of education
while 11 under-education exists when an individual possesses a
lower level of education than that required for a job (Cedefop
2010). Since this study deals with university graduates, only
over qualification aspect of vertical mismatch will be looked
upon. Horizontal mismatch otherwise known as field-of-study
mismatch occurs when a worker trained in a particular field of
study works in another field (Montt 2015) or when there is
mismatch between field of study and the job (Kim et al. 2012).
For example, a law, business or social science graduate who
works in the service sector. The choice of field of studies is
usually among other reasons driven by the expectation of
acquiring a job where knowledge gained during education will
be applied and rewarded (Nordin et al. 2010, Domadenik 2013).
Education-job mismatch has been considerably focused on in the
literature especially in the developed countries and the main
focus has been on measuring over-education and the negative
labour market outcomes of such a mismatch (i.e wage penalty,
job dissatisfaction and job mobility) (Allen and Verden 2001,
Barone and Ortiz 2010). In addition, most definitions and use
of the term education-job mismatch have been more consistent
with vertical mismatch than horizontal mismatch (Betti et al
2007, Uzair-Ul-Hassan and Noreen 2013). Though differentiating
between the two types of education-job mismatch gives a broader
understanding of the concept, the aim of the present study is
not to differentiate between the two types, as the line between
them is very blurred in the case of this study. A university
graduate may not only be working in a job that he/she is
overqualified (vertical mismatch) for, but also in a job where
the knowledge he/she has acquired through higher education has
no relevance (horizontal mismatch). Therefore, education-job
mismatch among graduates in this study is understood in a
context where the type of jobs secured by graduates does not
match either their level of education or field of study or
both.
Local
Simon Kuznets (1955) predicted that income distribution
in capitalist countries would become more equal as the labor
force becomes more educated. As Knight and Sabot (1983)
observed, the change in educational composition of the labor
force itself has an effect on inequality. Whether it raises or
lowers inequality, assuming all other factors are held
constant, depends on the relative sizes of different
educational categories, their relative mean wages, and their
relative wage dispersions. The process of education effecting
income distribution can be simply explained as follows:
education creates a more skilled labor force. This will produce
a shift from low paid, unskilled employment to high paid,
skilled employment. This shift produces higher labor incomes,
a reduction in skill differentials and an increase in the share
of wages in total output. The general personal reasons for
choosing the occupation even if it is not related to the field
of study are job security wherein the worker had found the
secureness, assurance and continuity of gainful employment to
the said occupation even if it is not inclined to his taken
course, professional growth in 17 which they had achieved the
sense of fulfillment and usefulness of their personal drive on
the said occupation they have taken even if it is unmatched to
their field of study, pay, which pertains to monetary reason
of earning a higher compensation to the unmatched occupation
than to the related one, and quality of work life that refers
to the benefits, environment and way of life that the worker
is attaining which provides him the sense of belongingness and
satisfaction (Edgewise.ph, 2010). Prejudiced situations is
depicted in the condition of the nurses who are under the
health and welfare field of study in way that nurses fail to
pursue their careers not only because of financial incapability
of hospitals to give them a just compensation but worst is they
themselves are paying just to gain experience and after they
will still not be hired (Filipino Nurses Blog). And in the case
of the agricultural workers they had a greater tendency to
prefer not to be in lined to their field of study because of
the existence of non-competitive salaries and incentives due
to inefficient utilization of our agricultural sector;
therefore attaining an occupation unmatched in this field would
provide them a higher wage (Rwanda Skills Survey 2012
Agriculture Sector Report).
 CHAPTER III

METHODOLOGY
This chapter presented the method used by researchers.
This chapter shows the research design used, number of
respondents, instrument, and statistical treatment applied to
acquire the significant data in the research.

Research Method
The researchers utilized the qualitative method to aid
the study. Quantitative Research is primarily exploratory
research. It is used to gain an understanding of underlying
reasons, opinions, and motivations. It provides insights into
the problem or helps to develop ideas or hypotheses for
potential quantitative research.
We also used the simple random sampling for this study because
we intend to question different kinds of managers and employees
of different and random establishments.

Respondents of the Study

There are 100 random respondents from N.E. Pacific,
Cabanatuan City, Bongabon Nueva Ecija. In this study, in this
study, there are 43 females and 57 male respondents who are
the managers or employees of each of their establishments.

Research Instrument
In this research, we used a questionnaire to gather the
specific data what we needed for this study. This is an
example of our questionnaire:
Name(optional):
Gender:
Occupation:
Educational attainment:
Direction: Put a check on the space before your answer.
Age
18-30 31-40 41 and above
Civil Status
Single Married Separated Widow
Educational Attainment
High School Senior High College Under
School Graduate
No. of years working
1-12 mos. 1-5 yrs. 5yrs and above
SD- Strongly Disagree
D – Disagree
A – Agree
SA- Strongly Agree
My field of education is appropriate for this job.
SD D A SA
My current job offers me sufficient scope to use the
knowledge and skills I gained from school.
SD D A SA
I would perform better in my current job if I possessed
additional knowledge and skill.
SD D A SA
I think my knowledge and personal capacities would allow me
to perform to a more qualified job.
SD D A SA
I feel over qualified for my job.
SD D A SA
In my current job, I can use my skills and knowledge at
full extent.
SD D A SA
I would like to enhance my knowledge and master my new
skills.
SD D A SA
I have reasonable work load and/or job responsibilities.
SD D A SA
I have opportunity to learn new things from my work.
SD D A SA
I have received enough training to do my job well.
SD D A SA
 CHAPTER IV

Research Findings
This chapter is centered on presenting and analyzing the
empirical research findings with the main focus on the research
questions of the study. Here are the factors that we considered
and the outcome of the survey that we have conducted:

Gender:

Male 37
Female 63

Male Female

We have gathered a total of thirty seven (37) male

respondents and Sixty three (63) female respondents in an
overall total of 100 respondents.
Educational Attainment of the respondents:

High School 28
Senior High School 1
College 48
Under Graduate 23

Tally RF Tally
High School 28 0.28 28
Senior High 1 0.01 1
School
College 48 0.48 48
Under Graduate 23 0.23 23

High School Senior High School College Under Graduate

We have gathered a total of twenty eight (28) high school,

one (1) senior high school, forty eight (48) college and twenty
three (23) under graduate respondents.
Age of the respondents:

18-30 60
31-40 26
41 and above 14

Tally RF RP
18 1 0.01 1%
22 2 0.02 2%
23 2 0.02 2%
26 4 0.04 4%
27 2 0.02 2%
28 3 0.03 3%
30 3 0.03 3%
31 6 0.06 6%
33 4 0.04 4%
34 8 0.08 8%
35 9 0.09 9%
36 4 0.04 4%
28 5 0.05 5%
40 12 0.12 12%
41 7 0.07 7%
42 12 0.12 12%
44 5 0.05 5%
45 5 0.05 5%
53 5 0.05 5%
60 1 0.01 1%

18-30 31-40 41 and above

We have gathered a total of sixty (60) respondents in a

bracket of eighteen to thirty (18-30), twenty six (26) in
thirty one to forty (31-40), and fourteen ganging from forty
one (41) and above.

The respondents’ answers:

SD D A SA
Question 1 21 28 33 18
Question 2 21 21 38 20
Question 3 20 18 42 30
Question 4 21 24 35 20
Question 5 18 17 37 28
Question 6 25 20 32 23
Question 7 26 22 30 22
Question 8 21 22 32 25
Question 9 22 22 36 20
Question 10 28 20 32 20

45
40
35
30
25
20
15
10
5
0
Question Question Question Question Question Question Question Question Question Question
1 2 3 4 5 6 7 8 9 10

SD D SA

We have discovered that majority of our respondents who

are experiencing job mismatch are not satisfied to their job
because they think that they are over qualified or they want a
job that is related to their course or the job that they desire.
 CHAPTER V
Summary, Conclusion, and Recommendation

This chapter presents the summary of the research work

undertaken, the conclusions drawn and the recommendations made
as an outgrowth of this study.

Summary

The objective of this study is to know the result of job

mismatch among individuals and if they are satisfied in their
current job. The conducted research uses descriptive research
method to gather data from the respondents which are selected
by Random sampling technique.

During the research, we managed to get some information

about the profiles of the respondents. Also, we managed to know
their response from the given questionnaires.

Conclusion

It is common and well known that a job mismatch can

possibly occur in some of the individuals. Change of mind,
discovery of skills in other job, and other various reason can
be the result of job mismatch.

In the proposed research, majority of individuals who

mismatched in their job are at the age of 18-30 with the
educational attainment of college. In addition, the most common
reason of job mismatch is the change of minds of the individuals
through their job objective. To sum up, job mismatch is not
considered a threat in community. It is known as opportunity
to find and try some new skills for satisfaction.
Recommendation

The outcome of this study shows us that more and more

people that are experiencing job mismatch are not satisfied to
their current job. We have two major recommendations. first is
for the government and the business owners. The must only
accept those people who are course related to that specific
job for the people to know which job is in demand and what is
not. Yes, there are many job opportunities or job openings but
the problem is that there are people who want to grab that
opportunity but has not reached the qualifications or standards
required for that specific job. And here is where our second
recommendation comes in. We recommend that the people nowadays
must prioritize their “needs” before their “wants”. We must be
optimistic. Not just because we want that kind of job, it
doesn’t mean that they must take that course related to that.
We must look for the job that is in demand and be practical
for the betterment of our future. We are net saying that we
must not chase our dreams. We simply recommend that lets just
put our priorities first to avoid this kinds of problems. Its
all a matter of choosing the right strategy and focusing on
our future.