Analysis of Education-Job Mismatch and its Effects on Wages and Job Satisfaction in Aparri, Cagayan

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Divine Krizza P. Cruz

Committee Member

Ma. Janda Ira Felina M. Benedictos, Gideon P. Carnaje, Maria Angeles O. Catelo

Request Access

For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

Education is widely regarded as the foundation of human capital, equipping individuals with the skills and competencies needed in the labor market. Human Capital Theory posits that educational investment increases productivity and wages. However, these benefits depend on how well educational attainment aligns with labor market demands. When misaligned, the returns to education may be diminished.

This study examined the effects of educational mismatch (overeducation, undereducation, and horizontal mismatch) on wages and job satisfaction in Aparri, Cagayan. Using survey data of 165 respondents, the analysis uses Ordinary Least Squares (OLS) and ordered probit regressions, supported by qualitative responses.

Overeducation was the most prevalent, amounting to approximately 78% of the sample and horizontal mismatch at 47%. Meanwhile, it was found that there is only one incidence of undereducation among workers in Aparri, Cagayan. Results indicate that overeducation is associated with slight wage penalties. Educational mismatch does not significantly influence job satisfaction in any model.

By contrast, wages consistently emerge as the strongest and most significant predictor of job satisfaction. Other variables such as sex, civil status, and firm size showed varying degrees of significant in wage outcomes but had limited effects on job satisfaction.

Qualitative responses reinforce these results, highlighting income stability, workplace environment, and job security as key satisfaction drivers. In Aparri’s semi-rural labor market, mismatch appears to be a normalized experience rather than a source of dissatisfaction.

The study recommends that local policies prioritize wage improvement and job quality over strict education–job alignment. Future research should expand geographic scope and apply mixed-method or longitudinal approaches to better understand mismatch and labor outcomes.

Language

English

LC Subject

Labor market—Philippines, Job satisfaction--Social aspects

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 Y65

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS