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Horizontal educational mismatch among Indonesian graduates: is there any earnings penalty?

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  • Dani Rahman Hakim
  • Disman Disman
  • Dadang Dahlan

Abstract

This study examines the determinants and earnings effects of horizontal educational mismatch (HEM) among Indonesian graduates. We found that almost half of Indonesian workers mismatched their field of study. The earnings effect of this mismatch varies in each field of study group. We found an earnings premium for ISCED Code 01, 02, 05, 08, and 09 HEM workers. In contrast, HEM workers in ISCED Code 04, 06, 07, and 10 fields of study suffered an earnings penalty. Mere HEM workers in the ISCED Code 06 and 10 groups earn more than workers with undereducated or overeducated horizontal mismatch.

Suggested Citation

  • Dani Rahman Hakim & Disman Disman & Dadang Dahlan, 2025. "Horizontal educational mismatch among Indonesian graduates: is there any earnings penalty?," Education Economics, Taylor & Francis Journals, vol. 33(5), pages 747-774, September.
    • Handle: RePEc:taf:edecon:v:33:y:2025:i:5:p:747-774
    DOI: 10.1080/09645292.2024.2401998
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