The changing graduate labour market: analysis using a new indicator of graduate jobs

Table 5 Change in log wage penalty for mismatched over matched graduates between 1997–2001 and 2006–2012

Notes: Estimation model: \( \ln \left({y}_i\right) = {\alpha}_1\cdot {\mathrm{OE}}_i + {\alpha}_2\cdot T + {\alpha}_3\left({\mathrm{OE}}_i\cdot T\right) + {X}_i^{\prime}\beta + {e}_i \). y is real log hourly pay, OE is the dummy for overeducation, T is a (0/1) time dummy capturing the two periods, and X comprises controls for age, age squared, sex (pooled model only), dummies for ethnicity (Asian, Black, other, missing, and White as reference group), marital status, indicator for dependent children in the household, and a London dummy. The interaction coefficient picks up the change over time in the overeducation wage penalty. *p < .1; **p < .05; ***p < .01