Educational Mismatches and Labor Market Outcomes: Evidence from Both Vertical and Horizontal Mismatches in Thailand

Educational mismatches constitute negative impacts on labor markets in most countries. Thailand is no exception. This study analyzes data obtained from Thailand's Labor Force Survey to estimate the likelihood of horizontal and vertical mismatches and their impacts on labor market outcomes. Estimation results reveal the existence of a high level of both vertical and horizontal mismatches in the labor market. The vertical mismatch tends to be most prevalent in the case of graduates with degrees in the social sciences, while the existence of the horizontal mismatch is mostly found in the case of graduates with backgrounds in the physical sciences. Samples with a degree in health science seem to be least impacted by both types of mismatch. Education-job mismatches, either vertical or horizontal mismatches, are found to cause negative impacts on workers' employment. Findings indicate that workers who encountered either horizontal or vertical educational mismatches tended to have lower monthly incomes than did those without such mismatches. Vertical mismatches seemed to result in lower incomes than did the horizontal mismatches. Furthermore, both types of mismatch are found to not have any significant impact on workers' employability. However, when analyzing samples data divided by gender and fields of study, the impacts of the mismatches tended to vary. Moreover, analysis of the impacts on work situation suggests that there is an association between mismatches and the probability of searching for new jobs, causing the manufacturing sector to suffer from high turnover rate due to educational mismatches.

Author Information
Piriya Pholphirul, National Institute of Development Administration, Thailand

Paper Information
Conference: ACEID2016
Stream: Higher education

This paper is part of the ACEID2016 Conference Proceedings (View)
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