The relationship between objective overqualification, perceived overqualification and job satisfaction: employment opportunity matters

PurposeThe purpose of this study is to investigate the boundary conditions between objective overqualification and perceived overqualification. In addition, we aim to investigate the mediation patterns between objective overqualification, perceived overqualification and job satisfaction.Design/methodology/approachA two-wave survey was conducted with 382 new entrants of job market. Data was analyzed with Process 3.5 in SPSS 26.0 to test the hypothesized moderated mediation model.FindingsResults indicated that perceived overqualification fully mediated the relationship between objective overqualification and job satisfaction. In addition, the relationship between objective overqualification and perceived overqualification was significant unless employees perceived high internal employment opportunities but low external employment opportunities at the same time. Same moderating pattern was also evident in the indirect effect of objective overqualification? Perceived overqualification? Job satisfaction.Research limitations/implicationsThis study has theoretical and practical implications for personnel management. Theoretically, this study contributed to the understanding of the relationship between objective overqualification and perceived overqualification. Practically, this study found that offering internal employment opportunities can mitigate the perception of overqualification when employees perceive limited external employment opportunities.Originality/valueThis is one of few studies that stressed the boundary conditions between objective overqualification and perceived overqualification under the framework of relative deprivation theory. In addition, this study provided time-lagged evidence of the relationship between objective overqualification, perceived overqualification and job satisfaction.