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Overeducation and undereducation in Taiwan

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  • Hung, Chia-Yu

Abstract

This study analyzes the incidence of overeducation and undereducation and their effects on wages utilizing the data sets for the "Taiwan Social Change Survey" in 1997 and 2002. Our main conclusions are as follows. First of all, the rate of return on excess years of schooling is positive but smaller than that in relation to the required education. The rate of return on the years of deficit schooling is negative, but that the penalty is smaller than in the case of the required education. Secondly, the self-assessed overeducated workers tend to be pessimistic given their inferior promotion history, although the returns on their surplus education seem to be rather sound. By contrast, if overeducation is defined according to the method of means of realized matches, it provides a more favorable picture for the overeducated in terms of mobility history. Finally, given the current data on the limited samples, we do not regard the problems facing the young overeducated as being more serious than those facing the old cohort.

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  • Hung, Chia-Yu, 2008. "Overeducation and undereducation in Taiwan," Journal of Asian Economics, Elsevier, vol. 19(2), pages 125-137, April.
    • Handle: RePEc:eee:asieco:v:19:y:2008:i:2:p:125-137
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    2. Christian K. Darko & Kennedy K. Abrokwa, 2020. "Do you really need it? Educational mismatch and earnings in Ghana," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1365-1392, November.
    3. Wasim Qazi & Syed Ali Raza & Arshian Sharif, 2017. "Higher Education Development and Unemployment in Pakistan: Evidence from Structural Break Testing," Global Business Review, International Management Institute, vol. 18(5), pages 1089-1110, October.
    4. Seamus McGuinness & Konstantinos Pouliakas & Paul Redmond, 2018. "Skills Mismatch: Concepts, Measurement And Policy Approaches," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 985-1015, September.
    5. 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.
    6. 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.
    7. Chung‐Khain WYE & Rahmah ISMAIL, 2019. "The effects of ability on returns to over‐ and under‐education: Evidence from Malaysia," International Labour Review, International Labour Organization, vol. 158(3), pages 535-559, September.
    8. Liu, Yunbo & Yin, Lu & Guo, Jianru, 2021. "The quality of higher education and overeducation: Where should higher education funding go?," Finance Research Letters, Elsevier, vol. 41(C).
    9. Aftab Ahmed Memon & Zhimin Liu, 2019. "Assessment of Sustainable Development of the Performance of Higher Education Credentials in the Transitive Labor Market," Sustainability, MDPI, vol. 11(9), pages 1-14, May.
    10. Yih‐chyi Chuang & Chia‐Yu Liang, 2022. "Overeducation and skill mismatch of university graduates in Taiwan," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1693-1712, August.
    11. Kitae Sohn, 2010. "The Role of Cognitive and Noncognitive Skills in Overeducation," Journal of Labor Research, Springer, vol. 31(2), pages 124-145, June.
    12. S.D. Kapelyuk & E.N. Lishchuk, 2020. "The Scale of Overeducation in the Rural Labor Market," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(3), pages 370-397.
    13. Laszlo Gadar & Janos Abonyi, 2018. "Graph configuration model based evaluation of the education-occupation match," PLOS ONE, Public Library of Science, vol. 13(3), pages 1-19, March.
    14. Enriqueta Camps, 2009. "Globalization and culture shaping the gender gap: A comparative analysis of urban Latin America and East Asia (1970 - 2000)," Economics Working Papers 1145, Department of Economics and Business, Universitat Pompeu Fabra.

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