THE INCOME PENALTY OF VERTICAL AND HORIZONTAL EDUCATION-JOB MISMATCHES IN THE KOREAN YOUTH LABOR MARKET: A QUANTILE REGRESSION APPROACH

Hong-Kyun Kim, Seung C. Ahn and Jihye Kim

Hitotsubashi Journal of Economics, 2016, vol. 57, issue 1, 67-90

Abstract: In this paper we estimate the income effects of over-education and horizontal education-job mismatch jointly by quantile regressions using a data set of Korean college graduates. We find that over-education and horizontal mismatch are positively correlated. Thus, the income loss by over-education (horizontal mismatch) is overestimated if it is estimated ignoring horizontal mismatch (over-education). This overestimation problem is particularly prevalent for workers at low and near-median deciles of the conditional income distribution. We also find that the income penalty on over-education is prevalent for most all quantiles, whereas the income penalty on horizontal mismatch is significant for lower quantiles.

Keywords: vertical and horizontal mismatches; income penalty; quantile regression (search for similar items in EconPapers)
JEL-codes: I20 J20 J21 J23 J24 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitjec:v:57:y:2016:i:1:p:67-90

DOI: 10.15057/27941

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