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Title page

Contents

Abstract 3

1. Introduction 4

2. Background on Mismatch 6

3. Data 9

4. Results: Increasing Mismatch Penalty Over Time 13

5. Explaining the Increasing Mismatch Penalty 15

5.1. Field of Study Composition 15

5.2. Field of Study Characteristics 17

5.3. Occupation-Specific Demand Shifts 20

5.4. Vertical Mismatch 23

5.5. Reason for Mismatch 28

6. Conclusion 30

References 32

A. Data Appendix 35

Tables

Table 1. Descriptive Statistics 11

Table 2. Probability of Being Mismatched, by Year and Group 12

Table 3. Most Important Reason for Working in Job Unrelated to Field of Degree 13

Table 4. OLS Regressions, Log of Annual Salary and Job Somewhat Related or Unrelated To Degree Field 14

Table 5. Mean Not Related Penalty Using Penalty within Field of Study by Year 17

Table 6. OLS Regressions, Mismatch Penalty by Field of Study-Year 19

Table 7. OLS Regressions, Log of Annual Salary and Job Somewhat Related or Unrelated To Degree Field, With Occupation Controls 21

Table 8. Correlations between Occupation Returns and Average Level of Mismatch in Occupation 22

Table 9. Occupational Congruence 24

Table 10. Required Education Level, by Degree and Job Relatedness 26

Table 11. OLS Regressions, Log of Annual Earned Income, Over/Required/Under Education, U.S. Census 28

Table 12. OLS Regressions, Log of Annual Salary and Job Unrelated To Degree Field, by Reason Most Important 29

Figures

Figure 1. Closely Related, Somewhat Related and Not Related, by Degree and Year 10