Social class stagnation is a current topic of concern. The stagnation of generational mobility could result in society losing its ability to enhance individuals’ social status. This study explored higher education expansion as a possible cause of class stagnation by adopting the Human Development Index as a comprehensive indicator of individual social status, and determined dynamic mobility by observing the case of Taiwan, where higher education was expanded in 1994. Pseudo-panel data were obtained from the Family Income and Expenditure Survey. Our results indicate that rapid higher education expansion has a negative impact on social mobility for the generation who enters the labor market after the expansion starting point.