Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms

Skill mismatch, a manifestation of poor job matching quality, is becoming an essential factor that hinders workers from realizing their productive potential and obtaining reasonable remuneration. This study investigated the internal relation between skill mismatches and wages, including the influenc...

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Main Authors: Xin Zhao, Dan Wu, Lijin Wang
Format: Article
Language:English
Published: SAGE Publishing 2025-02-01
Series:SAGE Open
Online Access:https://doi.org/10.1177/21582440251318540
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author Xin Zhao
Dan Wu
Lijin Wang
author_facet Xin Zhao
Dan Wu
Lijin Wang
author_sort Xin Zhao
collection DOAJ
description Skill mismatch, a manifestation of poor job matching quality, is becoming an essential factor that hinders workers from realizing their productive potential and obtaining reasonable remuneration. This study investigated the internal relation between skill mismatches and wages, including the influencing processes and mechanisms. Findings showed that excessive vertical mismatches and horizontal skill mismatches result in wage losses for workers. Both mismatches affect the final wage level by changing the degree of job negativity. Additionally, excessive vertical skill mismatches mitigate the wage penalty effect by increasing the degree of job control. The possibility of occurrence of both skill mismatch types increases as job competition becomes more intense and job prospects become more promising; taking these factors into account, the degree of wage impact will be weakened. These findings further clarify the relation between skill-matching status and wage return and provide value judgment for increasing workers’ job satisfaction.
format Article
id doaj-art-4210b9212a174cbfbbffcbaa925181dd
institution Kabale University
issn 2158-2440
language English
publishDate 2025-02-01
publisher SAGE Publishing
record_format Article
series SAGE Open
spelling doaj-art-4210b9212a174cbfbbffcbaa925181dd2025-02-07T08:03:19ZengSAGE PublishingSAGE Open2158-24402025-02-011510.1177/21582440251318540Wage Effect and Workers’ Skill Mismatch: Paths and MechanismsXin Zhao0Dan Wu1Lijin Wang2Hubei Innovation Research Center of Rural Social Management, Wuhan, ChinaHainan Provincial Key Laboratory of Ecological Civilization and Integrated Land-sea Development, Haikou, ChinaZhongnan University of Economics and Law, Wuhan, ChinaSkill mismatch, a manifestation of poor job matching quality, is becoming an essential factor that hinders workers from realizing their productive potential and obtaining reasonable remuneration. This study investigated the internal relation between skill mismatches and wages, including the influencing processes and mechanisms. Findings showed that excessive vertical mismatches and horizontal skill mismatches result in wage losses for workers. Both mismatches affect the final wage level by changing the degree of job negativity. Additionally, excessive vertical skill mismatches mitigate the wage penalty effect by increasing the degree of job control. The possibility of occurrence of both skill mismatch types increases as job competition becomes more intense and job prospects become more promising; taking these factors into account, the degree of wage impact will be weakened. These findings further clarify the relation between skill-matching status and wage return and provide value judgment for increasing workers’ job satisfaction.https://doi.org/10.1177/21582440251318540
spellingShingle Xin Zhao
Dan Wu
Lijin Wang
Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms
SAGE Open
title Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms
title_full Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms
title_fullStr Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms
title_full_unstemmed Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms
title_short Wage Effect and Workers’ Skill Mismatch: Paths and Mechanisms
title_sort wage effect and workers skill mismatch paths and mechanisms
url https://doi.org/10.1177/21582440251318540
work_keys_str_mv AT xinzhao wageeffectandworkersskillmismatchpathsandmechanisms
AT danwu wageeffectandworkersskillmismatchpathsandmechanisms
AT lijinwang wageeffectandworkersskillmismatchpathsandmechanisms