Dubai: Journal of Emerging Issues in Economics, Finance and Banking
This study investigates the effects of educational mismatch on unemployment duration. Although higher education can upgrade personal social status and income, it might lead to the wasting of educational and human resources when highly educated graduates cannot immediately find an appropriate job. We use multiyear cross-sectional data from Taiwan’s Manpower Utilization Survey to examine the effects and identify over-education by using standard deviation. Our empirical results show that with the worsening of the problem of over-educated, the duration of unemployment increased substantially. In addition, the excessive supply of overeducated graduates might crowd out the employment opportunities of undereducated graduates, resulting in longer
unemployment duration for both.
Journal of Emerging Issues in Economics, Finance and Banking 1(5), pp.430-443