Abstract: This study focuses on skill mismatch, the discrepancy between the proficiency levels in numeracy, literacy, and digital problem solving, and the levels of proficiencies required to perform their jobs. According to the analysis of the Program for the International Assessment of Adult Competencies (PIAAC) data, about 12% of Korean workers were over-qualified for their job, while the international average was about 6% (Palmer, 2017; Quintini, 2017). Previous studies support that skill mismatch affects productivity, job satisfaction, and, most importantly, wage inequalities. Analyzing the Graduates Occupational Mobility Survey in Korea, Kim et al. (2011) found that skill mismatch was the strongest factor affecting wages, and over-skilled workers had 17.4% lower wages than those who had a job that matched their skill level. Quintini (2017) also supported that wage inequality can be reduced by 4.6% if numeracy skill level matches that of numeracy use in the workplace.
A body of studies found several factors related to skill mismatch in Korea. Ryu (2014) found that Korean workers who had higher levels of education and those who worked in large companies were more likely to be over-skilled. Additionally, major-job congruence was one of the factors related to skill mismatch and wage gaps (Kim et al., 2011). The findings from previous studies allude that the level of highest education, along with other factors such as the employer, major, gender, and age, can be related to the higher proportion of the over-skilled workforce in Korea.
Existing studies provided compelling evidence that skill mismatch is associated with the level of education. However, there is scarce research on the different factors associated with skill match with high school graduates, associate’s degree holders, or four-year degree recipients. Considering that 51% of Korean adults between 25 and 64 years old received postsecondary education, which is 11% higher than the OECD country average (OECD, 2021), the findings from the aggregated analysis have the potential to bias toward Korean adults who have four-year college degrees. Thus, our study aims to examine factors related to skill mismatch with disaggregated analysis by the highest level of education. The research questions are, 1. What are the associated factors of skill mismatch in Korean workers with a high school diploma? 2. What are the associated factors of skill mismatch in Korean workers with an associate’s degree? 3. What are the associated factors of skill mismatch in Korean workers with a bachelor’s degree?
The data was drawn from the PIAAC data collected in Korea in 2017 that included over 6,000 Korean adults with variables including their highest level of education, the field of study, skill used in the job, and numeracy, literacy, and digital problem-solving test scores. To examine distinct factors associated with skill mismatch, we disaggregated the PIAAC data by the highest educational credentials reported by the participants. As an analytic strategy, we employed three sets of multinomial logistic regression analyses for a dependent variable with three categories: over-skilled, matched, and under-skilled groups.
The findings of this study are expected to provide evidence on how different factors are related to skill mismatch with different education levels and implications for research, policy, and practice to reduce skill mismatch in Korea.
