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Vertical and Horizontal Educational Mismatches of Female Graduates in Taiwan

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  • Hung-Lin Tao
  • Chia-Yu Hung

Abstract

type="main"> This study considers both vertical and horizontal educational mismatches, with the former referring to overeducation and undereducation, and the latter to the mismatch between college major and job. It is found that the wage premium of the vertical educational match is greater than that of the horizontal educational match. A better vertical match augments the wage premium of an improvement in the horizontal match, and vice versa. The horizontal educational mismatch appears to be an extended scenario of overeducation because graduates from colleges with low rankings have a higher probability of being vertically overeducated as well as horizontally mismatched. Graduates from highly-ranked colleges are privileged to not only have high earnings but also to have low probabilities for the vertical and horizontal mismatches. These low probabilities indirectly raise their earnings. The indirect effects of academic characteristics on earnings are calculated. The approach we propose provides an insight into how academic characteristics comprehensively influence earnings.

Suggested Citation

  • Hung-Lin Tao & Chia-Yu Hung, 2014. "Vertical and Horizontal Educational Mismatches of Female Graduates in Taiwan," Asian Economic Journal, East Asian Economic Association, vol. 28(2), pages 181-199, June.
    • Handle: RePEc:bla:asiaec:v:28:y:2014:i:2:p:181-199
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    File URL: http://hdl.handle.net/10.1111/asej.12032
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    Cited by:

    1. Hong-kyun Kim & Seung-jun Park, 2016. "Do Skill Mismatches Create a Wage Penalty? Alternative Estimates for Korea," Asian Economic Journal, East Asian Economic Association, vol. 30(3), pages 295-316, September.
    2. Manuel Salas-Velasco, 2021. "Mapping the (mis)match of university degrees in the graduate labor market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 55(1), pages 1-23, December.
    3. Kihong Park, 2018. "Vertical and horizontal mismatches and career mobility: evidence from female college graduates," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(2), pages 109-125, November.

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