Incidence Of Education Mismatch And Its Income Effect

With the progress of China’s education expansion,the problem of education mismatch has become an issue of concern to all sectors of society.On the hot issue of education mismatch,this paper mainly investigates from three aspects.Firstly,based on the Chinese General Social Survey(CGSS),this paper uses the realized matching method(mean value method)and the mode method to estimate the incidence of education mismatches in China and uses Logit model to analyze the influencing factors of education mismatches.Secondly,based on the wage equation and ORU equation,the income effect processing model of educational mismatch is established,and the instrumental variable method is used to measure the educational mismatch variable using the realized matching method.The educational mismatch variable measured by the mode method is used as the wage equation.Instrumental variables are used to detect the measurement error in the model,and to estimate the impact of education mismatch income.Then use the propensity score match(PSM)to further test the causal relationship between education mismatch and income.considering the problem of individual heterogeneity,this paper establishes an unconditional quantile regression model to explore the effect of education mismatch income heterogeneity on different quantile points in the entire distribution,and uses the Oaxaca-Blinder decomposition method to decompose educational mismatch and analyze the differences caused by the income effect of education mismatch in depth.Finally,through the analysis of human capital theory and job competition theory,this paper explores the mechanism of the impact of education mismatch on income in China’s labor market,and explains the results of the empirical analysis.Based on the above research,it is found that the current incidence of over-education and under-education in China’s labor market is about 15% and 14% respectively;among those with college education or above,the incidence of over-education is about 30%.At the same time,under the same conditions,over-educated workers are subject to a significant income penalty effect,and their average income level is 2.26% lower than that of education-matched workers.And workers with insufficient education will receive a certain wage premium,and their average income level is 10% higher than that of workers with matching education.In terms of policy choices,the paper argues that the education authorities in China at this stage should expand the scale of education in accordance with the principle of moderation and gradual progress,and must not rapidly advance or blindly expand;For enterprises,they should improve their human resource management strategies based on the principle of appropriate talents and focus on attracting talents at different levels,so as to deserve their "educational bonus" in the era of intensified labor competition;At the same time,for colleges and universities,they should proceed from the demand side of the labor market and rationally adjust the discipline and professional structure and talent training plan;for individuals,they also need to make rational investment in education to avoid lowering the economic return on education due to excessive education.Compared with previous scholars’ research,the possible innovations of this article are reflected in the following three points:(1)This article uses data from the latest three years of CGSS,which can be supplemented within the data range,and provide a robustness test for other related studies;(2)On the basis of the classic model,the PSM method is used to test the impact of education mismatch income,and the results are more robust;(3)For the first time,a quantile regression model is introduced in the related research exploring the effect of education mismatch income,which is used to study the error The distribution income effect provides a new idea.