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Vertical and Horizontal Education-Job Mismatches in the Korean Youth Labor Market : A Quantile Regression Approach

Author

Listed:
  • Hong-Kyun Kim

    () (Department of Economics, Sogang University, Seoul)

  • Seung C. Ahn

    (Department of Economics, Arizona State University and Sogang University)

  • Jihye Kim

    (Department of education policy and social analysis, Columbia University, U.S.A)

Abstract

In an analysis based on a cohort of Korean college graduates, there was a positive relationship between over-education and horizontal mismatches, and in a subsequent regression analysis disregarding horizontal education-job mismatches (over-education), the wage penalty for over-education (horizontal mismatches) was overestimated. Low-ability groups showed significant overestimation, ranging from 8.3% to 89.5%. According to the quantile regression results, the level of wage penalties for over-education and horizontal mismatches varied according to the worker¡¯s ability. The relative importance of these penalties varied according to the worker¡¯s ability and gender. Specifically, the wage penalty for horizontal mismatches exceeded that for over-education for low-ability male workers, whereas the wage penalty for over-education exceeded that for horizontal mismatches for female workers regardless of their ability.

Suggested Citation

  • 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, Research Institute for Market Economy, Sogang University.
  • Handle: RePEc:sgo:wpaper:1201
    as

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    File URL: ftp://163.239.156.99/wpaper/KHK_RIME_2012-1.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
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    4. Joop Hartog & Pedro Pereira & Jose Vieira, 2001. "Changing returns to education in Portugal during the 1980s and early 1990s: OLS and quantile regression estimators," Applied Economics, Taylor & Francis Journals, vol. 33(8), pages 1021-1037.
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    Cited by:

    1. Luc Bridet & Margaret Leighton, 2015. "The Major Decision: Labor Market Implications of the Timing of Specialization in College," Discussion Paper Series, Department of Economics 201510, Department of Economics, University of St. Andrews.
    2. Guillermo Montt, 2017. "Field-of-study mismatch and overqualification: labour market correlates and their wage penalty," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-20, December.

    More about this item

    Keywords

    Horizontal Mismatch; Over-Education; Wage Penalty; Quantile Regression; Ability Bias;

    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

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