Effects of Education-Job Match and Employee Competence on Labor Market Newcomers' Salary: A Multi-Level Analysis
Author: Jui-Min Hsiao (Department of Applied Economics and Management, National I-Lan University), Da-Sen Lin (Center for General Education,National I-Lan University), Chih-Chia Chuang (Department of Sociology, National Dong Hwa University)
Vol.&No.:Vol. 68, No. 4
Date:December 20233
Pages:227-255
DOI:https://doi.org/10.6209/JORIES.202312_68(4).0008
Abstract:
This study investigated the factors influencing graduates’ salaries. Specifically, this study analyzed the relationship between education and the labor market by considering education-job match and employee competencies. This article used credentialism, signaling theory and human capital theory as the theoretical basis to conduct in-depth analysis and discussion. To achieve research purpose, a multilevel analysis was adopted. At the group level, the study investigated several competencies, such as teamwork, communication skills, and expertise, among individuals with different university majors. At the individual level, the study focused on how vertical and horizontal education-job matches influence salary. The moderating effect of the two levels was also considered. Data were obtained from the 2006 follow-up of a university graduate survey from the Taiwan Integrated Higher Education Database, which contains data from bachelor’s and master’s degree holders. Our findings at the group level indicate that teamwork and expertise positively affect salaries. However, communication skills have the opposite effect. At the individual level, both vertical and horizontal education-job mismatches result in lower salaries. The interactions between these two levels, teamwork, and expertise moderate the relationship between vertical education-job match and salary. The three competencies do not moderate the relationship between horizontal education-job match and salary. In terms of theoretical explanations, credentialism and signaling theory have a positive impact on the salary increase of freshmen to the labor market. They act as a filter, eliminating education-misfit and major-misfit workers in the first stage. Thereafter, human capital theory takes substantial effect in the second stage. The research topic and analysis process are consistent with the labor market institution issues concerned by the “decent work and economic growth” project under the United Nations Sustainable Development Goals.
Keywords:education-job match, employee competency, hierarchical linear model, labor market institutions, moderating effect
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