FKP Seminar Series-CEDS Unpad "Jobs-Education Mismatch & Its Effect on Indonesia's Labor Market”

Center of Economics and Development Studies (CEDS ) Universitas Padjadjaran and Forum Kebijakan Pembangunan (FKP) conducted FKP Seminar Series: 

“Education-Job Mismatch & Its Effect on Indonesia's Labor Market”

Speakers :Prof. Dr. Armida Alisjahbana (CEDS),Pipit Pitriyan, SE, M.Si (CEDS),Raden Muhammad Purnagunawan Ph.D (CEDS)
Discussant: Dr. Mohamad Fahmi

Seminar was in Friday, 10th November 2017

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Studies on educational mismatch and its impact on labor market outcome have been abundant in recent years. However, most of the studies have been done for advanced countries. Not many studies on this topic are done for Asia with the exception on Korea and Taiwan. This study contributes to the existing literature by estimating vertical educational mismatch for Indonesia by analyzing the data from Sakernas 2014. The study specifically focuses on university and vocational diploma science and engineering graduates who work in the formal sector. The study employs the normative approach to measure over, required or under-educational mismatch at the 3 digit occupation level. It is shown that wage penalties exist, where both over-educational and under-educational mismatch receives wage penalty compared to those with required educational level for the job he/she holds. The effect is greater for university graduates compared to vocational diploma graduates holding individual, employment characteristics, major of study within the science and engineering field, and sector of employment constant. This shows the differential effect of educational mismatch between university versus vocational diploma graduates, where the former has less effect on its average wage rates. As this is a work in progress, a more complete analysis of the results will be given in the revised version of the paper within the next 3 months.


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Center for Economics and Development Studies is a research center under the Department of Economics, Padjadjaran University, Indonesia. A leading research institute in Indonesia in the area of economics and development studies.
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