Impact of Vertical and Horizontal Mismatches on Earnings Among Highly-Educated Employees in Japan

Abstract

This study investigates the vertical and horizontal mismatches among highly-educated employees in Japan. The critical point of view on the effects of job-education mismatches on graduate earnings is that job-education mismatches leads to the waste of human capital accumulated during graduates’ study years and brings negative consequences-earnings penalties. Our analysis reveals that vertical mismatch is more likely to significantly lower annual earnings compared with horizontal mismatch for both men and women. We also find that this mainly applies to university graduates and there is no significant penalty of vertical or horizontal mismatch among employees with a master’s or a doctoral degree. Our results also suggest that the horizontal mismatch is more common among female employees and that the penalty for overeducation is more severely pronounced in the fields of natural sciences or medicine and pharmacy.



Author Information
Mamiko Takeuchi, Aichi Gakuin University, Japan

Paper Information
Conference: IICE2023
Stream: Higher education

This paper is part of the IICE2023 Conference Proceedings (View)
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To cite this article:
Takeuchi M. (2023) Impact of Vertical and Horizontal Mismatches on Earnings Among Highly-Educated Employees in Japan ISSN: 2189-1036 – The IAFOR International Conference on Education – Hawaii 2023 Official Conference Proceedings (pp. 561-566) https://doi.org/10.22492/issn.2189-1036.2023.46
To link to this article: https://doi.org/10.22492/issn.2189-1036.2023.46


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Posted by James Alexander Gordon