The Wage Effects of Over-Education Among Young Stem Graduates

Park, Kihong; Jang, Dooseok

doi:10.1142/s0217590817500059

Cited by 3 publications

(1 citation statement)

References 19 publications

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“…Regarding previous studies in Korea, Park and Jang (2019) investigated the wage effects of overeducation for higher education graduates in 2011 and 2013. Applying the fixed effects and SA measure, the findings suggest that genuine overeducation exerts a higher wage penalty than apparent overeducation.…”

Section: The Wage Effects Of Overeducationmentioning

confidence: 99%

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

Sun

Kim

2021

IJM

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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.

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Section: The Wage Effects Of Overeducationmentioning

confidence: 99%

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

Sun

Kim

2021

IJM

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The Impact of Overeducation on Wages of Recent Economic Sciences Graduates

2022

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The over‐education wage penalty across the wage distribution: a case study of STEM PhD holders in South Korea

Park

2024

Asian-Pac Economic Lit

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To date the analysis on the wage penalty faced by over‐educated doctorate holders is surprisingly scarce. Being focused on college graduates, the existing literature has primarily tended to adopt a standard ordinary least squares regression technique that allows measuring the impact of over‐education on the conditional mean of the wage distribution. This paper aims to fill this gap, not only by assessing the extent to which the prevalence of over‐educated doctorate holders in science, technology, engineering, and mathematics (STEM) fields in South Korea is distributed across the wage distribution, but also by examining the extent to which their wage penalty relative to what they could have earned in a job corresponding to their level of education may have varied across the wage distribution. The main findings reveal that there is no evidence to support the notion that over‐education and ability are inversely related among STEM doctorate holders in Korea. Based on the empirical evidence, this article suggests that it is an oversimplification to characterise both the incidence and the wage effects of over‐education as merely reflecting lower‐ability levels, at least in the Korean context.

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The Wage Effects of Over-Education Among Young Stem Graduates

Cited by 3 publications

References 19 publications

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

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

The Impact of Overeducation on Wages of Recent Economic Sciences Graduates

The over‐education wage penalty across the wage distribution: a case study of STEM PhD holders in South Korea

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