Impact of education-job mismatches on wage: The case of university graduates in Cambodia

Sam, Vichet (2018): Impact of education-job mismatches on wage: The case of university graduates in Cambodia.

Abstract

This article analyzes the wage impacts of educational mismatches among university graduates in Cambodia by considering the both forms of mismatches (vertical and horizontal forms) and the possibility of their combination (double mismatch). This research uses two-stage least square regression to deal with the endogenous problem of education-job mismatches, while sample selection bias owing to non-employed graduates was also considered. Results prove that wage penalties exist with the strongest impacts for the case of double mismatch, following by overeducation and horizontal mismatch. The findings underline the importance of improvement in the quality of higher education in Cambodia. At the same time, creating the occupational counseling for students to consult would be also helpful to orientate students to the majors strongly needed by the labor market.

• Item Type: MPRA Paper
• Language: English
• Keywords: higher education, overeducation, horizontal mismatch, double mismatch, wage differentials, two-stage least square regression, endogeneity and sample selection bias.
• Subjects: I - Health, Education, and Welfare > I2 - Education and Research Institutions > I23 - Higher Education ; Research Institutions; I - Health, Education, and Welfare > I2 - Education and Research Institutions > I26 - Returns to Education; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials

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