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April 22, 2026Open Access

Education-Occupation Mismatch and the Role of Internal Migration Streams in Shaping Returns to Education

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Authors

FMFarrukh MahmoodInformation Technology UniversityARAbdul Wahab Rana

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Implication

Examines education-occupation mismatch in Pakistan, suggesting internal migration improves labor market outcomes.

Key Points

  • The research investigates how internal migration influences education-occupation match quality and economic returns to education in Pakistan.
  • Utilized the PSLM 2019-20 survey data focusing on 114,586 household heads aged 15-65.
  • Applied a realized-matches approach to assess education-occupation fit among individuals.
  • Employed advanced statistical models like Ridge, Lasso, and Elastic Net regressions to analyze wage returns.
  • Educational returns increased by 14.9% for each additional year of schooling after correcting for endogeneity.
  • Under-educated individuals faced an 18.2% wage penalty, while over-educated individuals had diminishing returns of 7.68%.
  • Migrants earned more than non-migrants, with migration flattening the mismatch returns curve.

Cite This Study

Mahmood et al. (2026) studied this question.

synapsesocial.com/papers/69e866616e0dea528ddeac54https://doi.org/10.22004/ag.econ.396458
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