The Impact of Education Mismatch on Employee Performance in the Public Sector: A Narrative Literature Review with Implications for Contract-Based Government Employees

Education mismatch-where there's a gap between what someone studied and what their job actually requires-has become a real concern in today's labor markets. This is especially true in the public sector. This literature review brings together existing research on education mismatch and what it means for how employees perform, with a particular focus on contract-based government workers like Indonesia's Pegawai Pemerintah dengan Perjanjian Kerja (PPPK). We look at three main types of mismatch: vertical mismatch (being overeducated or undereducated for your position), horizontal mismatch (working outside your field of study) and how these affect employee performance. What we found is that education mismatch does impact productivity, job satisfaction, turnover intentions and overall work performance-though how much and in what direction varies quite a bit depending on the context. Interestingly, the public sector has some unique features that seem to change how education mismatch affects performance. This review identifies the theoretical frameworks that help explain education mismatch, documents what research has found about performance impacts and suggests where future research should head-particularly for contract-based public employment systems. Our findings suggest that while education mismatch creates challenges for both employees and organizations, smart human resource management strategies can help reduce the negative effects and even make the most of mismatched workers' skills.