The Horizontal Mismatch vs. the Vertical Mismatch: Which Causes a Heavier Income Penalty?

초록

This paper compares the income penalty for a horizontal mismatch with that of a vertical mismatch by controlling for ability bias and using data on Korea’s youth labor market. Among the employees who graduated from a four-year college, the income penalty for a horizontal mismatch (10.01%) was heavier than that for a vertical mismatch (6.3%). Further, controlling for ability bias reduced all coefficients related to mismatches, but the extent was negligible.

키워드