Vertical and Horizontal Education-Job Mismatches in the Korean Youth Labor Market: A Quantile Regression Approach

Hong-Kyun Kim (), Seung Ahn () and Jihye Kim
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Hong-Kyun Kim: Department of Economics, Sogang University, Seoul
Jihye Kim: Department of education policy and social analysis, Columbia University, U.S.A

No 1201, Working Papers from Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy)

Abstract: In an analysis based on a cohort of Korean college graduates, there was a positive relationship between over-education and horizontal mismatches, and in a subsequent regression analysis disregarding horizontal education-job mismatches (over-education), the wage penalty for over-education (horizontal mismatches) was overestimated. Low-ability groups showed significant overestimation, ranging from 8.3% to 89.5%. According to the quantile regression results, the level of wage penalties for over-education and horizontal mismatches varied according to the worker¡¯s ability. The relative importance of these penalties varied according to the worker¡¯s ability and gender. Specifically, the wage penalty for horizontal mismatches exceeded that for over-education for low-ability male workers, whereas the wage penalty for over-education exceeded that for horizontal mismatches for female workers regardless of their ability.

Keywords: Horizontal Mismatch; Over-Education; Wage Penalty; Quantile Regression; Ability Bias (search for similar items in EconPapers)
JEL-codes: I20 J20 J21 J23 J24 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2012
New Economics Papers: this item is included in nep-edu and nep-lab
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Citations: View citations in EconPapers (4)

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