The Determinants of Education-Job Mismatches in Labour Market: Evidence from Employee Skills and Job Survey in Cambodia

Tackling labour market inefficiencies, particularly the education-job mismatch, has been a significant focus of policy. However, despite the prominence of this issue, empirical evidence informing policy designs is scarce. Using a sample of 2,891 employees from the 2021 Employee’s Skill and Job Survey, this study employs logistic regression and multinomial logit models to determine the factors that influence education-job mismatch in the Cambodian labour market. The results show evidence of supply-related education-job mismatch. The findings reveal that employees’ age and having tertiary education are positively associated with horizontal mismatch while being less likely to experience vertical mismatch, which is related to over-education-job mismatch. Education-job matching outcomes were also determined by other factors, such as scholarship status, subject preference, high-skill occupations, career guidance, internships, and choice of study subjects. This study contributes to the literature by enhancing the understanding of the education-job mismatch issue in developing economies, with an emphasis on Cambodia, and highlights the necessity of evaluating both vertical and horizontal dimensions of education-job mismatches. The findings provide empirical evidence for policymakers and educational institutions to utilize to develop targeted interventions, enhancing the alignment between education and employment, and enhancing labour market outcomes in Cambodia.