Effect of Horizontal-Education Mismatch on Job Satisfaction among Management Graduates in Sri Lanka

Horizontal education mismatch, which occurs when a person’s job is not related to their field of study, has become a significant issue in contemporary labour markets. As the human capital theory suggests, through investing in education and training, the earning capacity and productivity of employees will increase in the long run. But if such attained education and training are not put into practice, it is important to examine the effects of such mismatches on the expected labour market outcome. The objective of this study is to examine the effect of horizontal education mismatch on the job satisfaction of management graduates in Sri Lanka. Monthly income is considered as a moderating variable, and gender, work experience, and task variety are incorporated as control variables to account for their potential influence on job satisfaction. A multiple regression analysis was used to examine the relationship between variables. The findings conclude that horizontal education mismatch affects job satisfaction significantly and negatively, indicating that management graduates who are employed in jobs unrelated to their field of study experience lower levels of job satisfaction. Monthly income was found to significantly moderate this relationship by weakening the negative effect of mismatch on job satisfaction. Gender and job variety were also found to have significant influences on job satisfaction. The study offers important implications for HR policymakers, employers, and graduates to make more informed educational and career decisions. The findings also contribute to the limited empirical literature on education–job mismatch in Sri Lanka.