Overeducation and skill mismatch of university graduates in Taiwan

Abstract

Overeducation and skill mismatch have become crucial issues in the modern labor market. Taiwan's rapid structural transformation under industrialization since 1980 followed by the policy of expanding higher education after 1990 provides an excellent scenario for investigating the issues of overeducation and skill mismatch. Utilizing data from the Taiwan Education Panel Survey (TEPS) and its follow‐up survey (TEPS‐B), this paper develops an empirical strategy to test the effect of overeducation and skill mismatch on wage and job satisfaction for university graduates. As in the literature, Taiwan shows significant wage loss for both overeducation and skill mismatch and the wage penalty is higher for overeducation than for skill mismatch. Results from wage performance and job satisfaction estimations suggest both overeducation and job mismatch caused efficiency loss; however, the high wage loss and lower job dissatisfaction for overeducation imply overeducation may arise because of self‐selection under individual heterogeneity, which is not purely an efficiency loss. Therefore, the policy goal should properly focus on mitigating skill mismatch rather than overeducation.

Overeducation, Overskilling and Job Satisfaction in Europe: The Moderating Role of Employment Contracts

“…For instance, it is argued that workers may decide to improve their level of schooling in order to compensate for a lack in some human capital characteristic such as ability or experience (Sicherman, 1991). Overeducation may then be the result of self-selection based on the heterogenous abilities of individual workers (Chuang and Liang, 2022).…”

“…Indeed, there may well be overeducated workers who possess the level of skills required to do their job, meaning that overeducation does not necessarily imply overskilling (Pecoraro, 2014). In this respect, Chuang and Liang (2022) indicate that overeducation could be considered as a substitute for the lack of skills acquired through work experience. Besides, there might be workers who have the required level of education but who are considered as overskilled because they possess other (informal) skills beyond those required by their job.…”

Skill Mismatch, Nepotism, Job Satisfaction, and Young Females in the MENA Region

“…They corroborate that the impact of undereducation varies in different sectors characterized by low uncertainty but has a stronger effect in high-tech/knowledge industries. Furthermore, Chuang and Liang (2022) argued that skill mismatch was highest among workers involuntarily changing jobs due to economic downturns or declining occupations. This nevertheless greatly vanishes as people advance in their careers and gain more experience.…”

“…Their paper suggested that the best results for job satisfaction were reported in countries with educational systems geared to the respective labor market. Furthermore, Chuang and Liang (2022) examined the relationship between skill mismatch and formal education. The authors concluded that skill mismatch was a significant factor in job satisfaction.…”

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.…”