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

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.

Patterns and Persistence of Educational Mismatch: A Trajectory Approach Using Chilean Panel Data

The misalignment between workers’ educational levels and the educational level typically required for their occupations, namely educational mismatch, has become widespread. However, despite its potential costs, there is little evidence of this situation in developing countries. Using longitudinal and retrospective data of employment histories between 2009 and 2019, this paper conducts sequence analysis to construct a typology of educational mismatch trajectories among Chilean workers. We demonstrate that mismatch is a prevalent and persistent phenomenon. Once people enter the labor market, either as undereducated or overeducated workers, they tend to stay in such positions for extended periods of time. Moreover, we find significant wage penalties for workers in a mismatch situation. Results indicate that females and young, less-educated men are more prone to follow trajectories with longer periods of mismatch or unemployment. New avenues for research and the need for public policies looking at these phenomena are required to avoid people’s dissatisfaction due to a possible false promise that more education can improve their life standards.

Career of horizontal education mismatch workers: Career competency, job crafting, and work engagement

Education is one of many factors that has the biggest impact toward unemployment rate due to the fact that there are mismatches between educational background and the intended job, and it is named horizontal education mismatch. The employee who is run into educational mismatch condition is seen less-competent, less-qualified, and less accomplished associated with company and work engagement which should be owned by every employee, both supervisors and subordinates. The purpose of this study was to test out that Job Crafting can play a role as a relation mediator between career competencies and work engagement toward employees which run into horizontal education mismatch. This was quantitative research; with purposive sampling method to recruit the respondent. The respondent of this research was people with age range 17-65 years old and using Process v3.5 by Hayes, The Simple Mediation Model No.4. Considering the phenomenon of Horizontal Education Mismatch which has an impact on competency and work engagement. The uniqueness of this research was to pay attention to the suitability of educational background with the current occupation, which indirectly affects the competence of workers. The results of this study were in accordance with the aims and expectations of the researchers. The results of this study indicated that job crafting plays a role as a mediator in the correlation between career competencies and work engagement. Hopefully, it will be able to meet the competency needs of employees to increase employee engagement with the company.

Are we ready? Labour market transit to the digital economy

Industrialised countries are currently facing the knowledge-to-digital economy transition. That transition is strictly defined by how the labour market is organised and operates in the national economy. Some old to new phenomena are determinants of those dimensions, such as educational mismatch, credential inflation, and job polarisation. These phenomena affect the relationship between schooling and earnings, carrying consequences for social mobility, household welfare, and an individual's social progression perspective. Those phenomena remain understudied in the context of Latin America. Chile's case has gained relevance in the region due to the highly deregulated organisation of its educational market, the quality increase in its higher education institutions, and its funding policies for higher education. This work attempts to provide an extended diagnosis of the Chilean labour market, considering the impact of these emerging issues on the educational market and policymaking. The results show that 83.6% of Chilean employees experience an educational mismatch (overeducation and undereducation); credential inflation has depreciated the value of education over five of the six occupational categories – besides the polarisation index for industrialised countries such as the United Kingdom.