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Revisit the Earning Effect of Overeducation and Undereducation for College Graduates

Fri, April 17, 4:05 to 5:35pm, Virtual Room

Abstract

Based on a survey s with over 30,000 university graduates in 2015, the author investigated the income effects of over-education and under-education. The estimated income effects for over-education and under-education are 0.069 and -0.078 on starting salary and those are 0.050 and -0.077 on the subsequent salary in 2015. The results show that the ROR for over-education in China in 2015 is close to the estimate of prior studies conducted in Hong Kong and Taiwan (which is .052 in Leuven and Oosterbeek’s 2011 review). The negative income effect of underestimation is substantially larger than both the average of the world (-0.036) and that of Hong Kong and Taiwan (-0.042).

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