The wage effects of overeducation across overall wage distribution on university graduates: incidence, heterogeneity and comparison

Abstract

PurposeThis study aims to investigate the extent to which overeducation imposes wage effects on university graduates, taking into account the individual heterogeneity due to skills and innate ability.Design/methodology/approachUsing Graduates Occupation and Mobility Survey (GOMS) 2019 and Korea Dictionary of Occupations (KDOT) 2019, the overeducated and adequately educated graduates are differentiated by the job analysis (JA) measure. To unveil the masked results, the unconditional quantile regression (UQR) accompanying skills and field of study mismatches is adopted to explore the wage effects of overeducation across the overall wage distribution.FindingsEmpirical evidence shows that the incidence of overeducation is high; however, overeducated graduates only suffer a 6.5% wage loss relative to their adequately matched peers. The findings indicate that regardless of being derived from either overskilled or field of study mismatch, genuine overeducation impose a higher wage penalty at all percentiles relative to the apparent overeducation. Meanwhile, high-ability men suffer lower-wage penalties than their low-ability peers, whereas the inverted “U” pattern is exhibited for women. The theoretical hypotheses differ depending on the estimated results by gender.Research limitations/implicationsEach measure of educational mismatch has been criticized for its insurmountable shortcoming. The recent graduates are likely to overstate the job requires of skills.Originality/valueThis paper contributes to the insufficient evidence on the multiple aspects of wage effects of overeducation by providing new and rigorous examinations and by focusing on the country experiencing rapid economic growth, industrial upgrading and educational expansion.

Overeducation wage penalty among Ph.D. holders: an unconditional quantile regression analysis on Italian data

“…Bender and Roche (2018) find that the overeducation gap is larger at the lowest deciles of the wage distribution (about −70%) and reduces thereafter until becoming close to zero at the highest deciles. For Korea, Sun and Kim (2021) find a similar pattern of decreasing overeducation gap with the deciles of the wage distribution increasing. The size of the gap they find is, however, different from the USA case: from −9.2% at the 25th percentile to −5.4% at the 75th percentile.…”

Niedopasowanie kompetencji w organizacjach o zróżnicowanej wielkości

“…Zatem analizy empiryczne prowadzone w powyższym obszarze koncentrują się, począwszy od ujęć klasycznych (McClelland, 1973), na grupie studentów bądź absolwentów wkraczających na rynek pracy (np. Sun i Kim, 2022;Chuang i Liang, 2022;De Santis, Gáname i Moncarz, 2022). Nie oznacza to jednak, że problematyka identyfikacji i oceny potencjału kompetencyjnego nie jest analizowana na szczeblu ukształtowanych, doświadczonych pracowników (strona podażowa) (np.…”

Effects of educational mismatch on wages across industry and occupations: sectoral comparison

“…For example, the Spanish education system has been producing an increasingly qualified labour force, which does not match the actual demands of the Spanish labour market. For decades, the phenomenon of educational mismatch has attracted the attention of many authors in Spain and the rest of the world (Sun and Kim, 2021; Muñoz de Bustillo et al ., 2018; Nieto and Ramos, 2017). These authors have attempted to explain its origin, determinants and effects.…”