Research has shown that overskilling—where workers are not fully using their skills in their jobs—can lead to reduced wages and job satisfaction.

This report builds on that previous research and investigates the persistence of overskilling mismatch and the effect of past mismatch on wages. The research finds that persistence of overskilling mismatch is common among those who have been overskilled in the past and is highest among those who did not finish high school and VET diploma graduates. It was lowest among university graduates.
However, the wages of university graduates are significantly reduced by past overskilling, more so than for those in any other education level.
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