Income Effect Of Education Mismatch And Its Urban-rural Differences

During the 13 th Five Year Plan period,China’s educational modernization has made important progress.While China’s higher education has achieved leapfrog development,the supply of highly educated talents exceeds the actual demand of the employment market,resulting in the problem of educational mismatch.Education mismatch is the embodiment of insufficient utilization of human capital,which is not conducive to personal development and hinders social and economic growth.The human capital of rural labor force is more scarce than that of urban labor force,so we can make up for the lack of human capital by improving education.This thesis aims to study the income effect of education mismatch on urban and rural registered residence workers and its differences,and put forward policy suggestions to narrow the urban-rural dual income gap.Based on the research results at home and abroad,this thesis studies the urban-rural differences in the income effect of education mismatch from three aspects.Firstly,the occurrence of education mismatch in urban and rural areas in China is calculated by using CPFS data.Secondly,the income effect measurement model of education mismatch is constructed to explore the different impact paths of over education and education mismatch years on the income of urban and rural labor groups.Add the propensity score matching model to correct the self selection error,compare the income of two kinds of education mismatch groups with that of education adaptation groups,and calculate and estimate the relevant causal effect.Finally,using the Oaxaca blinder decomposition method based on RIF regression,this paper investigates the wage income gap between urban and rural workers at different income levels,explores whether the rural labor force encounters employment discrimination at different income levels and the degree,decomposes the wage gap and finds out the influencing factors of the gap.The empirical results show that the occurrence of education mismatch is more common in China,and the incidence of education mismatch in rural areas is 10.13% higher than that in urban areas.The income effect of education mismatch is significantly different between urban and rural areas.The average income level of over educated rural labor force is 13.6% to14.9% lower than that of urban workers.Lack of education will have a premium effect on the income of urban workers,and the average annual wage income is 23.6% to 33.9% higher than that of rural labor force.From the decomposition of the urban-rural income gap,the unexplainable factors in the total wage gap account for a large proportion.The rural labor force has suffered a certain degree of registered residence discrimination,but with the improvement of education,the proportion of discrimination has decreased significantly.Higher education can effectively narrow the income gap between urban and rural areas.The decomposition results of income equation based on RIF regression show that the income difference gradually decreases with the increase of income quantile,the punishment effect of over education and the premium effect of insufficient education show a distribution pattern of high in the middle and low at both ends,and the two effects of middle-income groups are significantly higher than those of high and low-income groups.At the point of medium and high income,the improvement of labor human capital endowment will effectively narrow the wage gap and alleviate registered residence discrimination to a certain extent.Based on the empirical results,this thesis puts forward countermeasures and suggestions:(1)government departments should actively create service conditions for educational career matching and guide the formation of a benign competitive employment environment.College enterprises should implement career education,teach students according to their aptitude,adapt to students’ own ability,and pay attention to improving teaching quality;(2)Effectively eliminate the policy discrimination against rural registered residence labor force,eliminate the barriers to access of rural labor force in the higher-level labor market,and ensure that rural registered residence labor force enjoys equal employment opportunities;(3)Individuals should establish a reasonable concept of employment,pay attention to the cultivation of the ability to integrate theory with practice,adjust their professional quality to meet the needs of national industry development,and do not blindly pursue academic qualifications.