IDEAS home Printed from https://ideas.repec.org/a/hit/hitjec/v57y2016i1p67-90.html
   My bibliography  Save this article

The Income Penalty Of Vertical And Horizontal Education-Job Mismatches In The Korean Youth Labor Market: A Quantile Regression Approach

Author

Listed:
  • KIM, HONG-KYUN
  • AHN, SEUNG C.
  • KIM, JIHYE

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.

Suggested Citation

  • Kim, Hong-Kyun & Ahn, Seung C. & Kim, Jihye, 2016. "The Income Penalty Of Vertical And Horizontal Education-Job Mismatches In The Korean Youth Labor Market: A Quantile Regression Approach," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 57(1), pages 67-90, June.
    • Handle: RePEc:hit:hitjec:v:57:y:2016:i:1:p:67-90
    DOI: 10.15057/27941
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/27941/HJeco0570100670.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.15057/27941?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ana I Moro-Egido & Santiago Budría, "undated". "Overeducation and Wages in Europe: Evidence from Quantile Regression," Studies on the Spanish Economy 229, FEDEA.
    2. Sattinger, Michael, 1993. "Assignment Models of the Distribution of Earnings," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 831-880, June.
    3. Séamus McGuinness, 2006. "Overeducation in the Labour Market," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 387-418, July.
    4. Omar Arias & Walter Sosa-Escudero & Kevin F. Hallock, 2001. "Individual heterogeneity in the returns to schooling: instrumental variables quantile regression using twins data," Empirical Economics, Springer, vol. 26(1), pages 7-40.
    5. McGuinness, Seamus & Sloane, Peter J., 2011. "Labour market mismatch among UK graduates: An analysis using REFLEX data," Economics of Education Review, Elsevier, vol. 30(1), pages 130-145, February.
    6. Hartog, Joop, 1980. "Earnings and Capability Requirements," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 230-240, May.
    7. Moshe Buchinsky, 2001. "Quantile regression with sample selection: Estimating women's return to education in the U.S," Empirical Economics, Springer, vol. 26(1), pages 87-113.
    8. Robst, John, 2007. "Education and job match: The relatedness of college major and work," Economics of Education Review, Elsevier, vol. 26(4), pages 397-407, August.
    9. Kelly, Elish & O'Connell, Philip J. & Smyth, Emer, 2010. "The economic returns to field of study and competencies among higher education graduates in Ireland," Economics of Education Review, Elsevier, vol. 29(4), pages 650-657, August.
    10. Sicherman, Nachum, 1991. ""Overeducation" in the Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 101-122, April.
    11. McGuinness, Seamus & Bennett, Jessica, 2007. "Overeducation in the graduate labour market: A quantile regression approach," Economics of Education Review, Elsevier, vol. 26(5), pages 521-531, October.
    12. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, April.
    13. Groot, Wim & Maassen van den Brink, Henriette, 2000. "Overeducation in the labor market: a meta-analysis," Economics of Education Review, Elsevier, vol. 19(2), pages 149-158, April.
    14. Roger Koenker & Kevin F. Hallock, 2001. "Quantile Regression," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 143-156, Fall.
    15. Hersch, Joni, 1991. "Education Match and Job Match," The Review of Economics and Statistics, MIT Press, vol. 73(1), pages 140-144, February.
    16. Russell W. Rumberger, 1987. "The Impact of Surplus Schooling on Productivity and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 22(1), pages 24-50.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmed Lahsen, Amina & Piper, Alan T. & Thiele, Ida-Anna, 2020. "Kim Jiyoung, Born 1982, and the Labour Market: Overeducation, Gender, Income and Life Satisfaction. Panel evidence from Korea," MPRA Paper 100616, University Library of Munich, Germany.
    2. 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.
    3. Sedláček Jan & Zelenka Martin, 2021. "The effects of education-job (mis)match on the earnings of graduates in the Czech Republic," Review of Economic Perspectives, Sciendo, vol. 21(2), pages 105-150, June.
    4. Ahmet Alper Ege & Erkan Erdil, 2023. "Determinants of overlapping mismatch in the Turkish labour market," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-9, December.
    5. Yuki Onozuka, 2022. "Basic Skills or Major-Specific Knowledge? Sources of Wage Penalties for Working Outside the Major Field of Study," Journal of Labor Research, Springer, vol. 43(1), pages 24-64, March.
    6. Hugh Cassidy & Amanda Gaulke, 2024. "The increasing penalty to occupation‐education mismatch," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 607-632, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hong-Kyun Kim & Seung C. Ahn & Jihye Kim, 2012. "Vertical and Horizontal Education-Job Mismatches in the Korean Youth Labor Market : A Quantile Regression Approach," Working Papers 1201, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    2. Balzhan Serikbayeva & Kanat Abdulla, 2022. "Education-Job Mismatch: Implications for Individual Earnings and Aggregate Output," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 723-752, September.
    3. 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.
    4. Kampelmann, Stephan & Rycx, François, 2012. "The impact of educational mismatch on firm productivity: Evidence from linked panel data," Economics of Education Review, Elsevier, vol. 31(6), pages 918-931.
    5. L. Cattani & G. Guidetti & G. Pedrini, 2014. "Assessing the incidence and wage effects of overeducation among Italian graduates using a new measure for educational requirements," Working Papers wp939, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Araújo, Isabel & Carneiro, Anabela, 2020. "Educational Mismatches of Newly Hired Workers: Short and Medium-run Effects on Wages," GLO Discussion Paper Series 668, Global Labor Organization (GLO).
    7. Baktash, Mehrzad B., 2023. "Overeducation, Performance Pay and Wages: Evidence from Germany," GLO Discussion Paper Series 1327, Global Labor Organization (GLO).
    8. 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.
    9. Isabel ARAÚJO & Anabela CARNEIRO, 2023. "Educational mismatches of newly hired workers: Short‐ and medium‐term effects on wages," International Labour Review, International Labour Organization, vol. 162(3), pages 355-383, September.
    10. Kihong Park, 2021. "Qualifications, job mismatch, and workers with disabilities," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(2), pages 161-180, May.
    11. Shujaat Farooq, 2015. "Job Mismatches in Pakistan: Is there Some Wage Penalty to Graduates?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(2), pages 147-164.
    12. Carolina Castagnetti & Luisa Rosti & Marina Toepfer, 2017. "Overeducation and the Gender Pay Gap in Italy. A Double Selectivity Approach," DEM Working Papers Series 144, University of Pavia, Department of Economics and Management.
    13. Lamo, Ana & Messina, Julián, 2010. "Formal education, mismatch and wages after transition: Assessing the impact of unobserved heterogeneity using matching estimators," Economics of Education Review, Elsevier, vol. 29(6), pages 1086-1099, December.
    14. 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.
    15. Inmaculada Garc�a-Mainar & V�ctor M. Montuenga-G�mez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    16. Eleni Kalfa & Matloob Piracha, 2017. "Immigrants’ educational mismatch and the penalty of over-education," Education Economics, Taylor & Francis Journals, vol. 25(5), pages 462-481, September.
    17. Rolf van der Velden & Mark Levels & Jim Allen, 2014. "Educational mismatches and skills: New empirical tests of old hypotheses," Investigaciones de Economía de la Educación volume 9, in: Adela García Aracil & Isabel Neira Gómez (ed.), Investigaciones de Economía de la Educación 9, edition 1, volume 9, chapter 34, pages 655-680, Asociación de Economía de la Educación.
    18. Hartog, Joop, 2000. "Over-education and earnings: where are we, where should we go?," Economics of Education Review, Elsevier, vol. 19(2), pages 131-147, April.
    19. Matloob Piracha & Florin Vadean, 2013. "Migrant educational mismatch and the labor market," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 9, pages 176-192, Edward Elgar Publishing.
    20. Sucharita Ghosh & Emanuele Grassi, 2020. "Overeducation and overskilling in the early careers of PhD graduates: Does international migration reduce labour market mismatch?," Papers in Regional Science, Wiley Blackwell, vol. 99(4), pages 915-944, August.

    More about this item

    Keywords

    vertical and horizontal mismatches; income penalty; quantile regression;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hit:hitjec:v:57:y:2016:i:1:p:67-90. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Digital Resources Section, Hitotsubashi University Library (email available below). General contact details of provider: https://edirc.repec.org/data/fehitjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.