Overeducation, Major Mismatch, and Return to Higher Education Tiers: Evidence from Novel Data Source of a Major Online Recruitment Platform in China

Yanqiao Zheng, Xiaoqi Zhang and Yu Zhu
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Yanqiao Zheng: Zhejiang University
Xiaoqi Zhang: Southeast University

No 13868, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We develop a novel approach to study overeducation by extracting pre-match information from online recruitment platforms using word segmentation and dictionary building techniques, which can offer significant advantages over traditional survey-based approaches in objectiveness, timeliness, sample sizes, area coverage and richness of controls. We apply this method to China, which has experienced a 10-fold expansion of its higher education sector over the last two decades. We find that about half of online job-seekers in China are two or more years overeducated, resulting in 5.1% pay penalty. However, the effect of overeducation on pay varies significantly by college quality, city type, and the match of college major with industry. Graduates in STEM (Science, Technology, Engineering and Mathematics) or LEM (Law, Economics and Management) from Key Universities are much less likely to be overeducated in the first place, and actually enjoy a significant pay premium even when they are in the situation.

Keywords: online recruitment data; major-industry mismatch; overeducation; China (search for similar items in EconPapers)
JEL-codes: I23 I26 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2020-11
New Economics Papers: this item is included in nep-cna, nep-edu, nep-lma and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: China Economic Review, 2021, 66 (1), 101584

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Journal Article: Overeducation, major mismatch, and return to higher education tiers: Evidence from novel data source of a major online recruitment platform in China (2021)
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